VIQ Solutions amends credit agreement with Beedie

Executive Summary

• VIQ Solutions Inc. has entered into an eighth amendment to its credit agreement with related-party lender Beedie Investments Ltd., modifying terms for its $15 million senior secured loan and $1.5 million term loan.
• The amendment establishes a finance committee to lead a targeted refinancing of obligations by April 30, 2026, during which the lender agrees not to accelerate repayment, subject to revised financial covenants.
• The transaction is classified as a related-party transaction under Multilateral Instrument 61-101, with exemptions from formal valuation and minority shareholder approval requirements applied.

Key Details

• Amendment Details: Eighth amendment agreement to the credit agreement dated January 13, 2023.
• Lender: Beedie Investments Ltd. (Related party).
• Debt Instruments Affected:
  • $15 million (U.S.) senior secured loan.
  • $1.5 million (U.S.) term loan, of which $1.25 million (U.S.) has been drawn.
• Refinancing Timeline: The company established a finance committee to lead a targeted refinancing of obligations under the original loan and bridge loan by April 30, 2026.
• Covenant Relief: The lender will not demand or accelerate repayment of indebtedness outstanding under the original loan and bridge loan during the refinancing period, subject to the continued satisfaction of certain revised financial covenants.
• Purpose: To support recapitalization, strengthen the balance sheet, reduce leverage, and enhance long-term financial flexibility.
• Regulatory Status: Treated as a related-party transaction under MI 61-101. Exemptions from valuation and shareholder approval were relied upon under sections 5.5(a) and 5.7(1)(a) because the fair market value of the consideration does not exceed 25% of the company's market capitalization.
• Documentation: Copies of the credit agreement and the eighth amendment agreement are available under the company's profile on SEDAR+.

Notable Quotes

• "Pursuant to the eighth amendment agreement, the company has established a finance committee to lead a targeted refinancing of its obligations under the original loan and bridge loan by April 30, 2026."
• "This initiative reflects the company's commitment to strengthening the balance sheet, reducing leverage and enhancing long-term financial flexibility as it advances toward its next phase of growth."