VIQ Solutions Announces Draw on Previously Announced US$15 Million Credit Facility

VIQ Solutions Inc. ("VIQ", "VIQ Solutions" or the "Company") (TSX and Nasdaq: VQS), a global provider of secure, AI-driven, digital voice and video capture technology and transcription services, today announces that the Company has drawn a subsequent advance of US$1 million (the "Subsequent Advance") under the Company’s previously announced senior secured loan (the "Loan") of up to US$15 million with Beedie Investments Ltd. (the "Lender") pursuant to the terms of a credit agreement by and among the Company and the Lender (the "Credit Agreement"). As of the date hereof, US$13 million of the Loan has been advanced to the Company. The Company intends to use the Subsequent Advance primarily for a restructuring plan expected to yield between US$2M and US$2.5M in reduced expenses over the next 12 months.

“As we accelerate the expansion of our global AI generated workflow technologies, much like we announced in 2022, the integration of our acquisitions and migrations of our client base to our technology, drive cost reductions that result in savings to the company,” continued Susan Sumner. “Not only is the migration to aiAssist delivering higher productivity, but it also creates significant workflow improvements that drive greater efficiency throughout the entire organization, from production operations to finance, without compromising our client commitments. Every day we are proving that the model we set out to deliver to change this industry is in fact playing out as planned. While COVID-19 and the tumultuous economic conditions of the past two years brought many challenges to the Company, we now see the fruits of the investment and continued development of NetScribe, powered by aiAssist.”

Terms of the Credit Agreement and Warrant Issuance
The principal amount outstanding under the Loan bears interest at 12.5% per annum, comprised of cash interest of 9.5% per annum, calculated and paid monthly, and paid-in-kind interest charged at a rate of 3.0% per annum, compounded monthly and added to the outstanding principal amount of the Loan. A standby fee is charged monthly at a rate of 1.5% per annum on the undrawn amount of the standby facility.

In connection with the Subsequent Advance, the Company has issued 497,423 common share purchase warrants (each, a "Warrant") to the Lender. Each Warrant is exercisable to purchase one common share of the Company (each, a "Warrant Share") at an exercise price of CDN$0.45 per Warrant Share. The Warrants expire on July 25, 2030.