VIQ Solutions draws $1 million advance from secured loan for restructuring

By Mary-Katherine Stinson

Lexington, Ky., July 27 – VIQ Solutions Inc. announced a subsequent $1 million drawdown from its $15 million senior secured loan with Beedie Investments Ltd., according to a press release.

The company intends to use the subsequent advance primarily for a restructuring plan, expected to reduce expenses between $2 million and $2.5 million over the next 12 months.

VIQ also issued 497,423 share purchase warrants to Beedie Investments, each warrant allowing Beedie to acquire one company share for the exercise price of C$0.45 per warrant share. The warrants expire on July 25, 2030.

As previously reported, interest on the loan is 12.5% annually, comprised of cash interest of 9.5% and paid-in-kind interest of 3% annually.

A standby fee is charged monthly at a rate of 150 basis points annually on the undrawn amount of the standby facility.

SenaHill served as exclusive financial adviser for VIQ Solutions and Dentons Canada LLP acted as legal advisers on the transaction.

This drawdown brings the total advanced to the company to $13 million.

At closing, VIQ had drawn an initial $12 million advance, leaving the remaining $3 million available to be drawn in a minimum of subsequent advances of $1 million each.

VIQ Solutions is a Toronto-based technology company specializing in video and voice-to-text capture, providing services to law enforcement, immigration, medical, legal, insurance, courts and transcription service providers.

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