LeddarTech modifies terms of credit facility and bridge financing arrangement and reveals acquisition of Nasdaq warning notice

LeddarTech Extends Bridge Financing and Regains Compliance Period for Nasdaq Listing

LeddarTech Holdings Inc., a global software company based in Quebec City, has announced several significant developments aimed at securing its financial future and maintaining its position as a leading player in the automotive industry.

Firstly, LeddarTech has received a 180-day period to regain compliance with the Nasdaq's minimum market value of listed securities (MVLS). This follows a letter from the Listing Qualifications Department of the Nasdaq Stock Market LLC, indicating that the company did not comply with the MVLS of US$35,000,000.

In a bid to strengthen its financial position, LeddarTech has also announced a Fifth Amending Agreement with its initial bridge lenders regarding the Bridge Financing Offer. This agreement extends the maturity of the bridge loan to the earlier of May 23, 2025, and the business day following the Short-Term Outside Date. The payment of the monthly fees for August 2024 and for the months up until January 2025 is postponed to the earlier of the Short-Term Outside Date and May 23, 2025.

Moreover, the Fifth Amending Agreement requires LeddarTech to initiate and produce a plan regarding a refinancing, recapitalization, or any suitable transaction. Similarly, a Seventeenth Amending Agreement with Fédération des caisses Desjardins du Québec regarding the Desjardins Credit Facility temporarily postpones interest payment for July through December 2024 until the earlier of the Short-Term Outside Date or May 23, 2025. This agreement also decreases the minimum cash covenant under the Desjardins Credit Facility to C$1,800,000.

LeddarTech must make a monthly payment of C$125,000 under the Seventeenth Amending Agreement, payable on the first day of each month, until the Short-Term Outside Date.

LeddarTech's technology is designed for advanced driver-assistance systems (ADAS), autonomous driving, and parking applications in the automotive industry. The company's additional R&D centers are located in Montreal and Tel Aviv, Israel. LeddarTech has over 170 patent applications (87 granted) related to remote-sensing innovations that enhance ADAS, AD, and parking capabilities.

The organization's ultimate goal is to become the most widely adopted sensor fusion and perception software solution. The listing of LeddarTech's common shares will continue on the Nasdaq Capital Market, subject to compliance with other requirements.

It is important to note that forward-looking statements in the press release include predictions about LeddarTech's anticipated strategy, future operations, prospects, objectives, and financial projections. These statements are subject to various risks and uncertainties that could cause actual results to differ materially from those contained in the statements.

LeddarTech's financial information and reports can be accessed on their website and various social media platforms. For more information, visit LeddarTech's website.

LeddarTech modifies terms of credit facility and bridge financing arrangement and reveals acquisition of Nasdaq warning notice