LeddarTech Modifies Credit Agreement and Receives Deficiency Notices from Nasdaq
LeddarTech Holdings Inc., a global software company based in Quebec City, has announced several financial adjustments and continued support from Desjardins. The company specializes in AI-based sensor fusion and perception software solutions for Advanced Driver-Assistance Systems (ADAS), Autonomous Driving (AD), and parking applications, aiming to provide better awareness around vehicles for safer, more efficient, sustainable, and affordable global mobility.
Patent Applications and Grants
LeddarTech boasts over 160 patent applications, with 87 of them granted, enhancing its capabilities in ADAS, AD, and parking technologies. This extensive intellectual property portfolio underscores the company's commitment to innovation and its leading position in the industry.
Non-Compliance Notices from Nasdaq
The company has received notices from the Nasdaq Stock Market LLC indicating non-compliance with minimum bid price, MVPHS, and MVLS for continued listing on the Nasdaq Global Market. LeddarTech has 180 calendar days to regain compliance with the Nasdaq Listing Requirements.
Financing Discussions and Amended Agreement
In an effort to address near-term obligations and larger financing, LeddarTech is progressing discussions with several principal shareholders and other potential investors. The company has also entered into an Eleventh Amending Agreement with Fédération des caisses Desjardins du Québec regarding the Amended and Restated Financing Offer dated as of April 5, 2023.
Under this agreement, National Bank of Canada will fund LeddarTech as the lender for the Desjardins Credit Facility between August 6, 2024, and August 15, 2024. The agreement temporarily reduces the required Minimum Cash Covenant to C$1,000,000 from August 15, 2024, until the earlier of the Short-Term Outside Date or November 15, 2024. Additionally, the agreement temporarily postpones the payment of interest for the months of July, August, September, and October 2024 until the earlier of the Short-Term Outside Date and November 15, 2024.
The Amendment and Waiver provides for a monthly payment by the Company to Desjardins of C$125,000 until the Short-Term Outside Date.
Update on Third-Quarter Financial Results
Frantz Saintellemy, President and CEO of LeddarTech, stated that the company is pleased to have the continued support of Desjardins and looks forward to providing an update when they release their third-quarter financial results on August 14.
Securities and Regulatory Compliance
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.
Additional Information
Additional information about LeddarTech can be found on its website and various social media platforms. Investors are reminded to read the Company's disclosures regarding the Nasdaq notices, which can be found in its Report of Foreign Private Issuer on Form 6-K and Annual Report on Form 20-F.
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. However, LeddarTech remains committed to its mission and will evaluate available options to regain compliance with the Listing Requirements, but there can be no assurance of success.
The Company's common shares will continue to be listed and traded on the Nasdaq Global Market under the symbol "LDTC."
