VIQ Solutions Inc. announced that it has entered in a senior secure loan for the gross proceeds of $15 million on January 13, 2023. The transaction will include participation from new lender Beedie Capital. The loan will bear interest rate of at 12.5% per annum, comprised of cash interest of 9.5% per annum, calculated and paid monthly, and paid-in-kind interest will be charged at a rate of 3.0% per annum, compounded monthly and added to the outstanding principal amount of the loan. The company will also pay a standby fee will be charged monthly at a rate of 1.5% per annum on the undrawn amount of the standby facility. The company paid a commitment fee of 1.5% of the loan. The lender has also been granted a board observer right. In addition, the company has agreed to issue additional common share purchase warrants in connection with the subsequent advances, with such number of warrants to be equal to 17% of the amount of such subsequent advance divided by the exercise price of such subsequent warrants. The subsequent warrants are to have an exercise price equal to the five-day volume weighted average price of the company?s common shares immediately prior to the earlier of the announcement of the applicable subsequent advance, and the funding of the applicable subsequent advance. The subsequent warrants will expire seven years from the date of issuance. The transaction contemplated has been conditionally approved by the Toronto Stock Exchange.

On the same date, the company received $12 million of the loan in its first tranche. The company has also issued 7,968,750 common share purchase warrants to the lender. Each warrant is exercisable to purchase one common share of the company at an exercise price of US$0.256 per warrant share. The warrants expire on January 16, 2030.