PHOENIX, Ariz.--(BUSINESS WIRE)--VIQ Solutions Inc. (“VIQ” or the “Company”) (TSX Venture Exchange: VQS and OTC Markets: VQSLF), a global provider of secure, AI-driven, digital voice and video capture technology and transcription services, announced today that the remaining portion of the Company’s outstanding unsecured convertible notes (each a “Note”), in the aggregate principal amount of approximately USD$388,615 and having aggregate interest payable to maturity in the amount of approximately USD$248,882, have been converted into 390,003 common shares of the Company (each a “Common Share”). As a result, the Company will recognize a one-time non-cash aggregate total Interest expense of approximately USD$0.2 million during the fourth quarter of 2020 related to this transaction.
The Company has continued to optimize its capitalization table in advance of its expected uplisting from TSX Venture Exchange to TSX Exchange this January.
The Notes were held by an insider of the Company and, pursuant to the rules of the TSX Venture Exchange (the “TSXV”) and Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions (“MI 61-101”), the conversion of the Notes into Common Shares constitutes a “related party transaction”. The conversion of the Notes into Common Shares, however, is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as, at the time the transaction was agreed to, neither the fair market value of the transaction, nor the fair market value of the consideration paid for the transaction, insofar as it involved interested parties, exceeded 25% of the Company’s market capitalization.
For more information about VIQ, please visit viqsolutions.com.
About VIQ Solutions Inc.
VIQ Solutions is a global provider of secure, AI-driven, digital voice and video capture technology and transcription services. VIQ offers a seamless, comprehensive solution suite that delivers intelligent automation, enhanced with human review, to drive transformation in the way content is captured, secured, and repurposed into actionable information. The cyber-secure, AI technology and services platform are implemented in the most rigid security environments including criminal justice, legal, insurance, media, government, corporate finance, media, and transcription service provider markets, enabling them to improve the quality and accessibility of evidence, to easily identify predictive insights and to achieve digital transformation faster and at a lower cost.
Certain statements included in this news release constitute forward-looking statements or forward-looking information under applicable securities legislation. Such forward-looking statements or information are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that reliance on such information may not be appropriate for other purposes. Forward-looking statements or information typically contain statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements or information in this news release include, but are not limited to, the delisting of the common shares from the TSX-V and the up-listing of the common shares on the TSX, the Company accessing a broader investor base, enhancing liquidity, building long term value and the Company satisfying customary TSX listing conditions. Forward-looking statements or information is based on several factors and assumptions which have been used to develop such statements and information, but which may prove to be incorrect. Although VIQ believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because VIQ can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things, the Company's recent initiatives, and that sales and prospects may provide incremental value for shareholders. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used.
Forward-looking statements or information is based on current expectations, estimates and projections that involve several risks and uncertainties which could cause actual results to differ materially from those anticipated by VIQ including risks related to satisfaction of the conditions of the TSX, the COVID-19 pandemic and other risks discussed or referred to under the heading "Risk Factors" in the Company’s Annual Information Form for the financial year ended December 31, 2019, which is available at www.sedar.com. These risks and uncertainties may cause actual results to differ materially from the forward-looking statements or information. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.