Hi there,
There is nothing inherently wrong with investing in a company with low volume. However, you must know that there are risks involved in doing so. For example, if the company is highly volatile you may not be able to exit your position as quickly as you normally would, and it may be tougher to secure limit bids. Generally, a stock with low volume is more volatile and thus more risky.
Low trade activity is not necessarily common to small cap stocks - many have high liquidity. I avoid stocks with low volume as I want to have the flexibility to move in and out of my positions freely and not get stuck holding on to something I can't sell.
In terms of VQS, it appears to have suffered from low volume but it is now picking up. If you look over the past month, daily volume as consistently been higher than average and it is now above 40K shares daily. This is solid, and likely as a result of their plans to uplist. Doing so will certainly increase the company's profile and should have a positive impact on volume. I'd argue we are already seeing this materialize.
THe company recently had strong demand for its bought deal which led to a 33% upsize in its offering and the price was t $4.25 per share. The company seems to be trading at reasonable valuation but for some reason - analysts expect revenue to drop next year. Which may not be a big deal considering there is only one analyst covering the company. From what I can tell, the company has not released Fiscal 2021 outlook yet, but it is sitting on a nice pile of cash to accelerate growth thanks to its recent offering.
Mat