Ms. Audrey Liu reports

VIQ SOLUTIONS ANNOUNCES AMENDMENT TO CREDIT AGREEMENT, DRAW ON PREVIOUSLY ANNOUNCED US$15 MILLION CREDIT FACILITY, AND REPRICING OF WARRANTS

VIQ Solutions Inc. has entered into an amendment agreement with Beedie Investments Ltd. (the lender) in order to amend certain terms of the credit agreement dated Jan. 13, 2023, between the company and the lender (the credit agreement). In connection with entering into the amending agreement, the company has drawn a subsequent advance of $1.25-million (U.S.) (the subsequent advance) under its previously announced senior secured loan of up to $15-million (U.S.) with the lender pursuant to the terms of the credit agreement, as amended by the amending agreement. As of the date hereof, $14.25-million (U.S.) of the loan has been advanced to the company. The company intends to use the subsequent advance for growth initiatives.

Terms of the amended credit agreement and warrant issuance

Pursuant to the terms of the amending agreement, the interest rate on the loan was increased by 2 per cent to 14.5 per cent, which comprised cash interest of 9.5 per cent per annum, calculated and paid monthly, and paid-in-kind interest charged at a rate of 5.0 per cent per annum, compounded monthly and added to the outstanding principal amount of the loan. Pursuant to the amending agreement, the lender was also granted a participation right in certain future equity financings of the company in order to maintain its pro rata equity interest in the company determined on a partially diluted basis. Additionally, the company is obligated to seek shareholder approval at the company's next annual general meeting to approve an increase to the number of common share purchase warrants issuable to the lender under the credit agreement in order to permit the lender to receive the number of common share purchase warrants that the lender would have otherwise been able entitled to receive in connection with the subsequent advance and any further advance under the loan, but which were not issued because of the original limits set forth in the credit agreement. In the event the company is unable to increase the number of common share purchase warrants, the company is obligated to pay an amendment fee of $375,000 (U.S.) at the maturity or repayment of the loan.

In connection with the subsequent advance, the company has issued 123,365 common share purchase warrants to the lender. Each warrant is exercisable to purchase one common share of the company at an exercise price of 20.04 cents per warrant share. The warrants expire on Nov. 10, 2030. The lender is not an "insider" for the purposes of applicable Canadian securities laws.

A copy of the credit agreement is available, and the amending agreement will be available, under the company's profile on SEDAR+.

Warrant repricing

In connection with the subsequent advance, company also announces that it has received conditional acceptance from the Toronto Stock Exchange to amend the terms of 8,466,173 common share purchase warrants (collectively, the repriced warrants) held by the lender. The repriced warrants are currently exercisable at a prices between 34.9 cents and 45 cents. Under the terms of the amendment, the exercise price of the repriced warrants would be reduced to 20.04 cents. Completion of the amendment remains subject to final approval of the TSX and will not take effect until such time as approval has been received.

About VIQ Solutions Inc.

VIQ Solutions is a global provider of secure, artificial-intelligence-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 cybersecure AI technology and services platform are implemented in the most rigid security environments, including criminal justice, legal, insurance, 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.

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