VIQ Solutions closes on $15 million secured loan with warrants

By Mary-Katherine Stinson

Lexington, Ky., Jan. 17 – VIQ Solutions Inc. announced on Jan. 16 that it had closed on a $15 million senior secured loan with Beedie Investments Ltd., according to a news release.

VIQ drew an initial $12 million advance of which approximately $9 million is earmarked for refinancing all of VIQ’s existing senior debt, approximately $2 million for working capital and approximately $1 million for permitted growth initiatives.

The remaining $3 million may be drawn in a minimum of subsequent advances of $1 million each. The subsequent advances will be used by the company for business acquisitions or growth initiatives, unless otherwise agreed by the lender.

Interest is 12.5% annually, comprised of cash interest of 9.5% and paid-in-kind interest of 3% annually.

A standby fee will be charged monthly at a rate of 150 basis points annually on the undrawn amount of the standby facility. The company paid a commitment fee of 150 bps of the loan.

The lender has also been granted a board observer right.

VIQ also issued 7,968,750 share purchase warrants to Beedie Investments, each warrant allowing Beedie to acquire one company share for the exercise price of $0.256 per warrant share. The warrants expire on Jan. 16, 2030. The company will also issue warrants equaling 17% of the subsequent advances divided by the exercise price of such subsequent warrants good for seven years from issuance.

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

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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