LeddarTech Revises Credit Agreement and Bridge Loan Arrangement

LeddarTech Strengthens Partnership with Texas Instruments and Extends Bridge Loan Maturity

LeddarTech, a leading AI-based low-level sensor fusion and perception software solutions provider for Advanced Driver-Assistance Systems (ADAS), autonomous driving (AD), and parking applications, has announced several significant developments.

The Montreal-based company, with additional R&D centres in Quebec City and Tel Aviv, Israel, has entered into a strategic collaboration and software license agreement with Texas Instruments. This collaboration aims to accelerate the joint commercialization of their advanced technology. As part of the agreement, LeddarTech will receive advanced royalty payments from Texas Instruments.

In a move to further solidify its position, LeddarTech aims to become the most widely adopted sensor fusion and perception software solution in the industry. To support this ambition, the company has over 170 patent applications (87 granted) that enhance ADAS, AD, and parking capabilities.

LeddarTech's technology is available to Original Equipment Manufacturers (OEMs) and Tier 1-2 suppliers for efficient implementation of automotive and off-road vehicle ADAS solutions. The company's automotive-grade software generates accurate 3D models of the environment, enabling better decision-making and safer navigation.

In addition to the collaboration with Texas Instruments, LeddarTech has also extended the maturity of its bridge loan to December 13, 2024. This extension was facilitated through a Second Amending Agreement with the bridge lenders. Furthermore, the company entered into a Fourteenth Amending Agreement with Desjardins, temporarily postponing interest payments for July through December 2024.

Under the Fourteenth Amending Agreement, LeddarTech will be required to make monthly payments of C$125,000 until the Short-Term Outside Date. Notably, the Fourteenth Amending Agreement also temporarily suspends the minimum cash covenant under the Desjardins Credit Facility until the disbursement of the first installment of the royalty fee. The deferral of these payments will extend if the full first installment of the royalty fee is received on or before December 13, 2024.

On December 13, 2024, LeddarTech received a payment of $800,000 from Texas Instruments as part of the licensing agreement for intellectual property. After this disbursement, LeddarTech will be required to maintain a minimum cash balance of C$1,000,000 until the Short-Term Outside Date and C$5,000,000 at all times after that. The maturity date will be automatically extended upon the disbursement by Texas Instruments of the full first installment of the royalty fee.

Certain statements in this press release are forward-looking statements, predictive in nature, and dependent on future events or conditions. These statements may be identified by the use of words such as "anticipate," "believe," "expect," "plan," "intend," "forecast," "project," and other similar expressions. Forward-looking statements are not guarantees of future performance and are based on certain estimates and assumptions made by LeddarTech.

For more information about LeddarTech, visit www.LeddarTech.com and follow us on LinkedIn, Twitter, Facebook, and YouTube. Copies of the amendments will be filed under LeddarTech's SEDAR+ and EDGAR profiles at www.sedarplus.ca and www.sec.gov, respectively.

Factors such as changes in general economic and industry-specific conditions, potential adverse reactions or changes to relationships with customers, employees, suppliers, and other parties, and access to capital and financing could affect LeddarTech's performance.