LeddarTech Obtains Additional Waiver Under Credit Facility

Rhea-AI Summary

LeddarTech Holdings Inc. (Nasdaq: LDTC), an automotive software company, has secured a Tenth Amending Agreement with Fédération des caisses Desjardins du Québec regarding its credit facility. This waiver temporarily reduces the required Minimum Cash Covenant to C$1.3 million from July 26, 2024, through August 5, 2024. After this period, the company must maintain a minimum cash balance of C$5.0 million.

LeddarTech is currently in discussions with shareholders and potential investors to secure financing, which may include funds for near-term obligations. However, there's no guarantee that the company will successfully complete this Financing Transaction. Any securities offered in this transaction may not be registered under the Securities Act of 1933.

Positive

• Temporary reduction of Minimum Cash Covenant to C$1.3 million, providing short-term financial flexibility
• Ongoing discussions with shareholders and potential investors for additional financing

Negative

• Need for continuous amendments to credit facility suggests financial strain
• Requirement to maintain C$5.0 million cash balance after August 5, 2024, may be challenging
• Uncertainty surrounding the completion of the Financing Transaction
• Potential for unregistered securities offering, which may limit investor participation

QUEBEC CITY, Canada, July 29, 2024 (GLOBE NEWSWIRE) -- LeddarTech Holdings Inc. (“LeddarTech” or the “Company”) (Nasdaq: LDTC), an automotive software company that provides patented disruptive AI-based low-level sensor fusion and perception software technology, LeddarVision™, for ADAS, AD and parking applications, announces it entered into a Tenth Amending Agreement (the “Waiver”) with Fédération des caisses Desjardins du Québec (“Desjardins”) with respect to the Amended and Restated Financing Offer dated as of April 5, 2023 (as amended, the “Desjardins Credit Facility”). As previously announced by the Company on July 5, 2024, pursuant to a Ninth Amending Agreement to the Desjardins Credit Facility, the Company was required to maintain an unencumbered cash balance (the “Minimum Cash Covenant”) of C$3.5 million from July 5, 2024 through July 6, 2024, and C$1.8 million from July 7, 2024 through July 26, 2024. Pursuant to the Waiver, among other things, Desjardins has temporarily reduced the required Minimum Cash Covenant to C$1.3 million from July 26, 2024 through August 5, 2024, after which time the Company will be obligated to maintain a minimum cash balance of C$5.0 million.

The foregoing description of the Waiver does not purport to be complete and is qualified in its entirety by reference to the Waiver, a copy of which has been filed under the Company’s SEDAR+ and EDGAR profiles at www.sedarplus.ca and www.sec.gov, respectively. The foregoing also should be read in conjunction with the disclosures set forth in the Company’s Annual Report on Form 20-F for the year ended September 30, 2023 as filed with the Securities and Exchange Commission and under the Company’s SEDAR+ profile on January 31, 2024, including the disclosures set forth under “Item 3.D – Key Information – Risk Factors” contained therein.

The Company continues to progress its discussions with several of its principal shareholders and other potential investors to secure the financing described in the Company’s press release issued on July 5, 2024, which may include funding to meet near term obligations while the Company continues to seek to close the larger financing (collectively, the “Financing Transaction”). There can be no assurance that such existing shareholders or other potential investors will invest any amount in the Financing Transaction, or that the Company will successfully complete the Financing Transaction at all. Any debt or equity securities to be offered and sold in the Financing Transaction may not be registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in the Financing Transaction, nor shall there be any sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About LeddarTech

A global software company founded in 2007 and headquartered in Quebec City with additional R&D centers in Montreal and Tel Aviv, Israel, LeddarTech develops and provides comprehensive AI-based low-level sensor fusion and perception software solutions that enable the deployment of ADAS, autonomous driving (AD) and parking applications. LeddarTech’s automotive-grade software applies advanced AI and computer vision algorithms to generate accurate 3D models of the environment to achieve better decision making and safer navigation. This high-performance, scalable, cost-effective technology is available to OEMs and Tier 1-2 suppliers to efficiently implement automotive and off-road vehicle ADAS solutions.

LeddarTech is responsible for several remote-sensing innovations, with over 160 patent applications (87 granted) that enhance ADAS, AD and parking capabilities. Better awareness around the vehicle is critical in making global mobility safer, more efficient, sustainable and affordable: this is what drives LeddarTech to seek to become the most widely adopted sensor fusion and perception software solution.

Additional information about LeddarTech is accessible at www.LeddarTech.com and on LinkedIn, Twitter (X), Facebook and YouTube.

Contact:

Daniel Aitken, Vice-President, Global Marketing, Communications and Investor Relations, LeddarTech Holdings Inc. Tel.: + 1-418-653-9000 ext. 232 daniel.aitken@LeddarTech.com

• Investor relations website: investors.LeddarTech.com
• Investor relations contact: Kevin Hunt, ICR Inc. kevin.hunt@icrinc.com
• Financial media contact: Dan Brennan, ICR Inc. dan.brennan@icrinc.com
  

Leddar, LeddarTech, LeddarVision, LeddarSP, VAYADrive, VayaVision and related logos are trademarks or registered trademarks of LeddarTech Holdings Inc. and its subsidiaries. All other brands, product names and marks are or may be trademarks or registered trademarks used to identify products or services of their respective owners.

LeddarTech Holdings Inc. is a public company listed on the Nasdaq under the ticker symbol “LDTC.”

FAQ

What is the new Minimum Cash Covenant for LeddarTech (LDTC) from July 26 to August 5, 2024?

LeddarTech (LDTC) has obtained a waiver that temporarily reduces the required Minimum Cash Covenant to C$1.3 million from July 26, 2024, through August 5, 2024.

What will be LeddarTech's (LDTC) minimum cash balance requirement after August 5, 2024?

After August 5, 2024, LeddarTech (LDTC) will be obligated to maintain a minimum cash balance of C$5.0 million.

Is LeddarTech (LDTC) seeking additional financing as of July 29, 2024?

Yes, LeddarTech (LDTC) is in discussions with shareholders and potential investors to secure financing, which may include funding for near-term obligations.

Are the securities in LeddarTech's (LDTC) potential Financing Transaction registered under the Securities Act of 1933?

The press release states that any debt or equity securities to be offered in the Financing Transaction may not be registered under the Securities Act of 1933.