LeddarTech Announces Funding of Up to $9 Million and Conversion of $1.5 Million Convertible Notes at a Price Above Market of $2 per Share
LeddarTech Holdings Inc., a global software company headquartered in Quebec City, has announced a financing of up to US$9.0 million. The financing is composed of two tranches, with the first tranche of US$6.0 million funding immediately and the second tranche of US$3.0 million to be funded on or about October 15, 2024.
The financing is aimed at strengthening LeddarTech's financial position, enabling the company to continue its growth and innovation in the automotive and off-road vehicle Advanced Driver-Assistance Systems (ADAS) market.
The Bridge Financing Details
The financing is being facilitated by Bridge Loans offered by FS Investors and Investissement Québec. The Bridge Loans have a maturity date of November 15, 2024, and will be due and payable earlier upon the occurrence of certain other events. The Bridge Loans will be issued at a 25% original issue discount.
Interest under the Bridge Loans will be capitalized monthly and added to the outstanding principal amount of the Bridge Loans. It's worth noting that the Bridge Loans have not been registered under the Securities Act of 1933, as amended.
Related-Party Transaction
The Bridge Financing constitutes a "related-party transaction" as each of FS and IQ is an "insider" of the Company. Certain of LeddarTech's principal shareholders, FS Investors and Investissement Québec, and its senior lender, Fédération des caisses Desjardins du Québec, are involved in the financing.
FS Investors has agreed to convert US$1.5 million of its existing convertible notes into common shares at an above-market conversion price of US$2.00 per share. Maxim Group LLC is acting as financial advisor to the Company for the Bridge Financing.
LeddarTech's Technology and Innovation
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 applies advanced Artificial Intelligence (AI) and computer vision algorithms to generate accurate 3D models of the environment for better decision-making and safer navigation.
LeddarTech is responsible for several remote-sensing innovations, with over 160 patent applications (87 granted) that enhance ADAS, Autonomous Driving (AD), and parking capabilities. The company aims to become the most widely adopted sensor fusion and perception software solution for global mobility safety, efficiency, sustainability, and affordability.
Important Notice
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. The Bridge Loans may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements. No sales of any securities will be made in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
The strategic investors who are to invest a minimum of US$5.0 million in a subsequent capital raise at LeddarTech Holdings Inc. have not been publicly disclosed. It's also important to note that this news article does not aim to provide investment advice. Potential investors should conduct their own due diligence and consult with their financial advisors before making any investment decisions.
