Crown Capital Partners closed a $15 million term loan for VIQ Solutions, an Ontario-based technology company focused on digital media capture, workflow management and artificial intelligence tools.
“We are pleased to support the VIQ team as they leverage their strong existing transcription services platform and consolidate key areas of the industry through acquisitions,” said Chris Johnson, Crown president and CEO. “They operate in highly fragmented markets where digital solutions are poised to transform how audio and video recordings are processed and evidence documented. By acquiring cash generative traditional transcription businesses and deploying its proprietary software, VIQ is well positioned to accelerate revenues and improve margins.”
“As we execute the next growth phase, we are pleased to be working with Crown Capital along with new commercial partners and target companies. This level of non-dilutive capital will enable VIQ to transform digital document creation and transcription using our proprietary AI technology,” said Sebastien Paré, president and CEO of VIQ.
The term loan will be provided by Crown Capital Partner Funding, an investment fund managed by Crown and in which Crown holds a 37.1% interest. The loan will be funded with an initial advance of $5 million. The remaining $10 million will be available to fund subsequent acquisitions up to June 30, 2019.
The term loan bears a fixed interest rate of 10% per annum, matures in 60 months and includes the issuance to Crown Partners Fund of 2,127,659 common shares as well as warrants to acquire 9,000,000 common shares of VIQ.
VIQ Solutions is a global expert in video and voice-to-text capture, providing a cybersecure AI technology and service platform to law enforcement, immigration, medical, legal, insurance, courts and transcription service providers. It has a diversified customer base comprised of over 800 public and private agencies, with thousands of users in over 25 countries.
Founded in 2000, Crown is a specialty finance company that provides growth capital to a diversified group of successful mid-market companies that are seeking alternatives to banks and private equity funds.
