VIQ Solutions Announces Delisting from Nasdaq and Director Resignation

VIQ Solutions Inc. (“VIQ” or the “Company”) (TSX and Nasdaq: VQS), a global provider of secure, AI-driven, digital voice and video capture technology and transcription services, today announced that pursuant to its press release of September 30, 2022 announcing receipt of the initial notice of deficiency from the Listing Qualifications Department of the Nasdaq Stock Market LLC (“Nasdaq”), the Company received a final delisting notice from Nasdaq on September 26, 2023 due to the continued failure to satisfy the $1.00 minimum bid price listing requirement in Nasdaq Listing Rule 5550(a)(2). The Company notified Nasdaq that it would not appeal Nasdaq’s delisting decision. Nasdaq has notified the Company that trading of its common shares will be suspended as of the opening of business on October 5^th, 2023. The Company’s common shares will continue to be listed on the Toronto Stock Exchange.

After careful consideration, the board of directors of VIQ determined that it was in the overall best interests of the Company not to appeal and delist its common shares from Nasdaq. The decision was made based on several factors, including the board’s assessment of the probability of the Company regaining and maintaining compliance with the continued listing requirements through a reverse stock split, an analysis of the benefits of continued listing of a dual listing weighed against the onerous regulatory burden and significant costs and extensive amount of management’s time, attention and resources expended on regulatory compliance associated with maintaining continued listing requirements.

The Company estimates that its annual costs to maintain a dual listing are approximately $1.3M and are expected to increase significantly in the coming years due to SOX and ESG compliance and other requirements. The decision to delist from Nasdaq is consistent with the Company’s previously announced cost-saving measures. The Company anticipates that the delisting and cessation of trading on Nasdaq may have a material adverse effect on the liquidity and trading price of its common shares.

Nasdaq has informed the Company that it will file a Form 25-NSE with the Securities and Exchange Commission, which will remove the Company’s common shares from listing and registration on The Nasdaq Stock Market.

VIQ also announces today that Harvey Gordon has resigned from the board of directors of the Company effective September 26, 2023. The Company wishes him success and is appreciative of his contributions during his appointment as a director at VIQ.