VIQ to launch new Artificial Intelligence (AI) products to drive growth and further strategic value for its clients in 2019 and beyond
TORONTO, Jan. 08, 2019 (GLOBE NEWSWIRE) — VIQ Solutions Inc. (“VIQ” or the “Company”) (TSX Venture Exchange: VQS), a global provider of secure, AI-driven, digital voice and video capture technology and services for law enforcement, legal, insurance, courts, and transcription service provider markets, reported a strong finish to the year, signing significant contracts globally.
Significant new contracts: (All amounts in United States dollars, unless otherwise noted)
- The Milimani Commercial and Tax Courts in Nairobi, Kenya and Courts in Lesthoso, South Africa. VIQ to supply, install and maintain audio/visual recording equipment in various courts with expected expansion in the coming year.
- The Austin Police Department awarded Net Transcripts, a VIQ Solutions’ company, a contract extension for transcription services and the Australian Securities and Investment Commission executed a five-year contract extension with Spark & Cannon, a VIQ Solutions’ company, for transcription services.
“Through our direct sales team and partnerships with trusted resellers, VIQ continues to deliver solid results,” said Sebastien Paré, President and CEO of VIQ. “As our markets modernize their capture and transcription platforms, our new AI-driven solutions mean we can provide a true end-to-end solution to unlock the true value of data, realizing significant efficiency through greater process automation.”
“This was a landmark year of transformation for VIQ. Our expansion through new sales, contract extensions and strategic mergers and acquisitions enabled us to deliver and exceed on revenue and value generation commitments. I’m extremely proud of what we achieved in 2018 having entered the year with a recurring revenue run-rate of approximately $10M USD, and I am even more excited about the prospects for 2019 as we enter the year with $23M USD in recurring annual revenue with the opportunity to improve VIQ’s growth profile and operating margins through a combination of sales growth, expense efficiencies, expanded customer service, cross-selling opportunities, accelerated technology sales and additional strategic acquisitions.”
Key highlights in 2018 include:
- Transition from traditional software licence to SaaS-based revenue model continues with significant gains projected in the next 12 months as the transition continues in 2019.
- Appointed Chief Operating Officer to the executive team to build an operational infrastructure and implement the mergers and acquisition strategy.
- Began deployment of market-specific AI services from proceeds of capital raise in late 2017.
- Implemented mergers and acquisition strategy with three USA based companies, generating a combined EBITDA in excess of $3.0M to leverage our global transcription expertise and deploy our AI services to improve margins and deliver advanced customer value.
- Several letters of intent are in place for 2019 to expand the mergers and acquisition strategy and to extend VIQ’s footprint in an estimated $6-billion market for voice to text transcription according to MarketsandMarkets.com.
- Completed patent for: “Evidence based digital training portfolio” in October. Additional patent applications are in advanced registration stages.
- Expanded customer base for AI addressable digital content to realize efficiencies and margin gains with planned deployments in 2019.
- For the period Jan 1 to Dec 31, 2018, YTD VQS trading volume was up 20.5% to 40.6M over 2017 and the calculated Volume Weighted Average Price over that same period was CAD$0.20.
These 2018 highlights reflect key strategic advancements aligned with information shared on investor calls, latest press releases and our annual general meeting held in June 2018.
VIQ also intends to amend the terms of 5,511,139 outstanding warrants that are set to expire on May 15, 2019 and 2,675,581 outstanding warrants that are set to expire on May 22, 2019. Specifically, VIQ will make an application to the TSX Venture Exchange (the “TSXV”) to: (i) reduce the exercise price of the outstanding warrants to $0.162 per common share of VIQ; (ii) extend the expiry date of the warrants by 1 (one) year; and (iii) add an acceleration provision which will be effective up until the new expiry date, which will allow VIQ to reduce the expiry date of the warrants to 30 days if, during any ten consecutive trading days during the unexpired term, the closing price of the common shares on the TSXV exceeds $0.2025.
The warrants were originally issued in November 2017 as part of units that were issued pursuant to a concurrent brokered and non-brokered private placement completed by VIQ. The warrant extension and amendment are subject to the approval of the TSXV.
On December 31, 2018, VIQ granted 1,700,000 stock options to certain directors and officers of the Company. The options were granted in accordance with the Company’s stock option plan and have an exercise price of $0.142 per share, with a five-year term, vesting one third on the grant date, one third on the first anniversary of the grant date and one third on the second anniversary of the grant date.
For further information: Malcolm Macallum, Chief Innovation Officer, VIQ Solutions, (905) 948-8266, email: [email protected]
For more information about VIQ, please visit viqsolutions.com.
About VIQ Solutions Inc.
VIQ Solutions is a global expert in video capture software and audio recording with voice-to-text capabilities. VIQ provides a cyber-secure AI technology and service platform to law enforcement, immigration, medical, legal, insurance, courts, and transcription service providers, enabling them to unlock the value of their enterprise digital media and streamline their document-creation workflow, using artificial intelligence tools for measurable business gains.
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 include, but are not limited to, management’s targets for the Company’s growth in 2019, as well as the size, scope, and timing of the implementation of projects currently in the transition or letter of intent phase.
Forward-looking statements or information is based on several factors and assumptions which have been used to develop such statements and information, but which may prove to be incorrect. Although VIQ believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because VIQ can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this news release, assumptions have been made regarding, among other things, the consummation of the Company’s mergers and acquisitions strategy through its existing letters of intent, and that the change to the Company’s revenue model will provide additional value for shareholders. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions that have been used.
Forward-looking statements or information are based on current expectations, estimates and projections that involve several risks and uncertainties which could cause actual results to differ materially from those anticipated by VIQ and described in the forward-looking statements or information. These risks and uncertainties may cause actual results to differ materially from the forward-looking statements or information. Readers are cautioned that the foregoing list is not exhaustive of all possible risks and uncertainties.
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.
