MARKHAM, ONTARIO--(Marketwired - Dec. 15, 2016) - VIQ Solutions Inc. ("VIQ" or the "Company") (TSX
VENTURE:VQS), a global expert providing a cybersecurity protected technology and service platform, announced today the early
closing of its non-brokered private placement which was oversubscribed.
The Company issued 9,883,329 units ("Units") at a price of $0.21 per Unit for gross proceeds of CDN$2.1 million (the "Private
Placement"), exceeding the goal of CDN$2.0 million as set out in the Company's initial press release dated December 5, 2016 in
respect of the Private Placement.
"I am truly gratified by the strong support shown by VIQ shareholders," said Sebastien Paré, President and CEO of VIQ
Solutions Inc. "The financing's early success demonstrates investor confidence in our plan to accelerate growth."
VIQ intends to drive growth by transitioning into a leading edge subscription and cloud based solution provider. Funds will be
used to complete global secured cloud infrastructure investments, enhance existing subscription options and augment the Company's
software solutions to capitalize on large scale SaaS opportunities in the sales pipeline.
"The highest growth opportunity for VIQ lies in increasing recurring subscription revenue in the rapidly expanding SaaS and
cloud markets," said Mr. Paré. "The success of the Private Placement makes it possible to invest in the technology and
infrastructure to accelerate revenue growth and profitability."
Each Unit consists of one common share in the capital of the Company ("Common Share") and one half of one common share
purchase warrant (each whole Common Share warrant being a "Warrant"). Each Warrant entitles the holder to purchase one Common
Share at a price of $0.26 for a period of eighteen months (18) from the date of issuance, being June 15, 2018. The securities
being issued pursuant to the Private Placement will be subject to a hold period expiring four months and one day from the date of
issuance in accordance with applicable Canadian securities law and subject to final approval of the TSX Venture Exchange upon
filing standard documentation.
Insiders of the Company, inclusive of certain officers, directors and existing shareholders subscribed for an aggregate of
3,916,666 of Units representing approximately 40 percent of the Private Placement.
As a result, the issuances of Units to insiders pursuant to the Private Placement is considered related party transactions
within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 Protection of Minority Security
Holders in Special Transactions ("MI 61-101"). VIQ relied on exemptions from the formal valuation and minority approval
requirements in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of such insider participation, based on a determination
that the fair market value of the participation in the Private Placement by insiders did not exceed 25% of the market
capitalization of the Company, as determined in accordance with MI 61-101. The Company filed a material change report in respect
of the related party transaction less than 21 days prior to the closing of the Private Placement, which the Company deemed
reasonable in the circumstances so as to be able to avail itself of the proceeds of the Private Placement in an expeditious
manner.
For more information on what is making the news at VIQ Solutions, please visit our website at www.viqsolutions.com/news.html.
About VIQ Solutions Inc.
VIQ Solutions is the leading technology and service platform provider for digital evidence capture and content management. Our
secure modular software allows customers to onboard the VIQ platform at any stage of their organization's digitization, from the
capture of digital content from video and audio devices through to online collaboration, mobility, data analytics and integration
with sensors, facial recognition, speech recognition and case management or patient record systems. VIQ's technology leads the
industry in security, meeting the highest international standards for digital/cyber security and privacy, including military and
medical regulations.
Our solutions are in use in over 20 countries with tens of thousands of users in over 200 government and private agencies
including law enforcement, immigration, medical, legal, insurance, courts, transportation and transcription service providers.
VIQ also provides end to end transcription services to several large government agencies through our Australia-based reporting
and transcription partners. VIQ operates worldwide with partners like security integrators, audio-video specialists, and hardware
and data storage suppliers. Managing digital media evidence is what we do, and we do it better than anyone else. For more
information about VIQ Solutions, please visit www.viqsolutions.com.
Forward-looking Statements
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 for the purposes of applicable securities laws include, among
others, statements regarding the Private Placement, the use of proceeds of the Private Placement and the operation and future
performance of the Company. These forward-looking statements in this release are subject to numerous risks, uncertainties and
other factors that may cause future results, performance or achievements to differ materially from those expressed or implied in
such forward-looking statements.
The Company expressly disclaims any intention or obligation to update or revise any forward looking statements whether as a
result of new information, future events or otherwise except as required by applicable securities legislation. The
forward-looking statements or information contained in this news release are expressly qualified by this cautionary
statement.
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.