VIQ Solutions Raises Capital for Strategic Growth Acquisitions

VIQ Solutions (TSXV:VQS) announced that it is negotiating a secured term debt facility with a finance company for up to C$15 million to be utilized for strategic acquisitions.

The company, a provider of cybersecure AI technology and service platform said that the debit facility will be subject to negotiation and execution of definitive documentation.

As quoted in the press release:
Concurrently, the Company is raising additional capital in the form of convertible debentures (“Debentures”) with a target raise amount of USD $6.5M in one or more closings.

The details of the Debentures are as follows. A target raise in the amount of USD$6.5M of Debentures with an overallotment option to increase the size of the offering to USD$10.0M, subject to a minimum aggregate raise of USD$4.0M, which will accrue quarterly at a rate of 10% per annum. The Debentures will mature five years from the date of issuance. All accrued and unpaid interest shall be paid in kind by increasing the principal amount of the Debenture. The Debentures will be convertible into Shares at the holders’ option during the term of the Debentures at a conversion price equal to the 20-day volume weighted average price of the Shares on the TSX V as of the trading day immediately prior to the closing date of the Debenture financing (the “Conversion Price”).

Additionally, 0.5 common share purchase warrants (“Warrants”) will be issued to the holders of the Debentures for every Share issued upon the conversion of the Debentures. Pursuant to the terms of the Debenture financing, if any one investor subscribes for a minimum aggregate amount of USD $2M of Debentures, one (1) Warrant will be issued to the holder thereof for every Share issued upon the conversion of the Debentures.

“As we execute our next growth phase, we are pleased to be working with a strong debt partner capable of scaling with us, as well as many US-based investors along with new commercial partners and target companies. This level of non-dilutive capital will enable VIQ to transform digital document creation and transcription using the proprietary AI technology we have developed over the last year. Law enforcement, insurance, and courts & justice are some of the highly fragmented markets experiencing the early stages of a massive digital revolution in the processing of audio and video recordings, and documentation of evidence. These targeted acquisitions, once completed, will be accretive immediately. In addition, the acquisitions will increase our digital volume for AI processing and advance our AI product commercialization”, said Sebastien Paré, President and CEO of VIQ.

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