VIQ Solutions Amends Credit Agreement, Forms Refinancing Committee
VIQ Solutions Inc., a global provider specializing in secure, AI-driven digital voice and video capture technology alongside transcription services, has announced a significant amendment to its existing credit agreement. This marks the eighth such modification to the agreement, originally established on January 13, 2023, with Beedie Investments Ltd., the company’s primary lender. The latest pact, dubbed the “Eighth Amendment Agreement,” is strategically designed to bolster VIQ’s recapitalization efforts and support its long-term business objectives.
Central to the Eighth Amendment Agreement is the establishment of a dedicated Finance Committee within VIQ Solutions. This committee is tasked with orchestrating a focused refinancing of the company’s outstanding obligations under its initial US$15,000,000 senior secured loan and a US$1,500,000 term loan (of which US$1,250,000 has been drawn). The deadline for this comprehensive refinancing initiative is set for April 30, 2026.
This strategic maneuver comes as VIQ Solutions builds on a period of sustained positive adjusted EBITDA momentum, a key indicator of improving operational profitability. The company views this initiative as crucial for strengthening its balance sheet, reducing overall leverage, and enhancing long-term financial flexibility as it navigates its next phase of growth. A critical provision of the Eighth Amendment Agreement states that the lender will refrain from demanding or accelerating the repayment of the outstanding debt during this refinancing period, provided VIQ continues to satisfy certain revised financial covenants. This offers VIQ valuable breathing room and stability to execute its financial restructuring plan.
It’s noteworthy that Beedie Investments Ltd. is classified as a “related party” to VIQ Solutions under applicable securities laws, making the Eighth Amendment Agreement a related party transaction. However, VIQ Solutions has availed itself of specific exemptions outlined in Multilateral Instrument 61-101, a Canadian regulation designed to protect minority security holders in special transactions. These exemptions, specifically sections 5.5(a) and 5.7(1)(a) of MI 61-101, mean that the company was not required to obtain a formal valuation or minority shareholder approval for this agreement. This is because neither the fair market value of the subject matter nor the consideration involved in the Eighth Amendment Agreement exceeds 25% of VIQ Solutions’ total market capitalization.