LeddarTech Announces Receipt of Nasdaq Deficiency Notice

Rhea-AI Summary

LeddarTech Holdings (Nasdaq: LDTC), an automotive software company specializing in AI-powered sensor fusion and perception software technology, has received a deficiency notice from Nasdaq due to non-compliance with listing requirements. The company's stock failed to maintain the minimum bid price of $1.00 per share over 30 consecutive business days from February 4, 2025, through March 18, 2025.

The company has been granted a 180-day period to regain compliance with the listing requirement. During this time, LDTC shares will continue trading on the Nasdaq Capital Market while the company evaluates available options to meet the minimum bid price requirement. However, LeddarTech has noted that there is no guarantee it will successfully regain or maintain compliance with Nasdaq's continued listing requirements.

Positive

• 180-day grace period granted to regain compliance
• Continued trading on Nasdaq during compliance period

Negative

• Stock price consistently trading below $1.00, indicating weak market performance
• Risk of potential Nasdaq delisting if compliance is not achieved
• Company admits no assurance of regaining or maintaining listing compliance

Insights

Securities Regulatory Expert

The Nasdaq deficiency notice received by LeddarTech represents a significant regulatory challenge with material implications for investors. The company's share price has traded below the critical $1.00 threshold for an extended period (30 consecutive trading days), triggering formal non-compliance proceedings with Nasdaq's continued listing requirements.

While the 180-day compliance period provides a reasonable runway to address the issue, the current $0.597 share price sits 40% below the compliance threshold, requiring substantial positive momentum or corporate action to remedy. The absence of a specific remediation plan in the announcement is notable - companies in this position typically pursue options like reverse stock splits, strategic transactions, or accelerated business development initiatives.

For current investors, this notice creates heightened uncertainty as Nasdaq listing provides essential benefits: market liquidity, institutional investor eligibility, and credibility with potential business partners and capital providers. These factors are particularly crucial for an automotive software technology company requiring significant development capital.

Should LeddarTech fail to regain compliance within the allotted timeframe, potential consequences include transfer to the OTC markets, reduced trading volume, diminished analyst coverage, and access to institutional capital - all of which could further pressure valuation and growth prospects. The coming weeks will be critical for management to articulate a viable path toward compliance.

QUEBEC CITY, Canada, March 21, 2025 (GLOBE NEWSWIRE) -- LeddarTech^® Holdings Inc. (“LeddarTech” or the “Company”) (Nasdaq: LDTC), an automotive software company that provides patented disruptive AI-powered low-level sensor fusion and perception software technology, LeddarVision™, today announced that it has received a letter from the Listing Qualifications Department of the Nasdaq Stock Market LLC indicating that, based upon the closing bid price of the Company’s common shares for the 30 consecutive business day period from February 4, 2025 through March 18, 2025, the Company did not meet the minimum bid price of US$1.00 per share required for continued listing on the Nasdaq Capital Market (the “Listing Requirement”). The letter also indicated that the Company will be afforded a period of 180 calendar days to regain compliance.

The Company intends to actively monitor the closing bid price of its common shares and will evaluate available options to regain compliance with the Listing Requirement. However, there can be no assurance that the Company will be able to regain compliance with such Listing Requirement or maintain compliance with any of the other Nasdaq Capital Market continued listing requirements.

The letter has no immediate effect on the listing of the Company’s common shares, which will continue to be listed and traded on the Nasdaq Capital Market under the symbol “LDTC,” subject to the Company’s compliance with the other continued listing requirements of the Nasdaq Capital Market.

The foregoing also should be read in conjunction with the disclosures set forth in the Company’s Report of Foreign Private Issuer on Form 6-K as filed with the Securities and Exchange Commission and under the Company’s SEDAR+ profile on the date hereof, and the Company’s Annual Report on Form 20-F for the year ended September 30, 2024 as filed with the Securities and Exchange Commission and under the Company’s SEDAR+ profile on December 26, 2024, including the disclosures set forth under “Item 3.D – Key Information – Risk Factors” contained therein.

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 170 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.

Forward-Looking Statements

Certain statements contained in this Press Release may be considered forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (which forward-looking statements also include forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws), including, but not limited to, statements relating to LeddarTech’s anticipated strategy, future operations, prospects, objectives and financial projections and other financial metrics. Forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “may,” “will,” “should,” “would,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” “intend” and other similar expressions among others. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties and are not guarantees of future performance. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors, including, without limitation: (i) our ability to continue to maintain compliance with Nasdaq continued listing standards following our transfer to the Nasdaq Capital Market; (ii) our ability to timely access sufficient capital and financing on favorable terms or at all; (iii) our ability to maintain compliance with our debt covenants, including our ability to enter into any forbearance agreements, waivers or amendments with, or obtain other relief from, our lenders as needed; (iv) our ability to execute on our business model, achieve design wins and generate meaningful revenue; (v) our ability to successfully commercialize our product offering at scale, whether through the collaboration agreement with Texas Instruments, a collaboration with a Tier 2 supplier or otherwise; (vi) changes in our strategy, future operations, financial position, estimated revenues and losses, projected costs and plans; (vii) changes in general economic and/or industry-specific conditions; (viii) our ability to retain, attract and hire key personnel; (ix) potential adverse changes to relationships with our customers, employees, suppliers or other parties; (x) legislative, regulatory and economic developments; (xi) the outcome of any known and unknown litigation and regulatory proceedings; (xii) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism, outbreak of war or hostilities and any epidemic, pandemic or disease outbreak, as well as management’s response to any of the aforementioned factors; and (xiii) other risk factors as detailed from time to time in LeddarTech’s reports filed with the U.S. Securities and Exchange Commission (the “SEC”), including the risk factors contained in LeddarTech’s Form 20-F filed with the SEC. The foregoing list of important factors is not exhaustive. Except as required by applicable law, LeddarTech does not undertake any obligation to revise or update any forward-looking statement, or to make any other forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:
Chris Stewart, Chief Financial Officer, LeddarTech Holdings Inc.
Tel.: + 1-514-427-0858, chris.stewart@leddartech.com

• Investor relations website: investors.leddartech.com
• Investor relations contact: Mike Bishop, mike@bishopir.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

Why did LeddarTech (LDTC) receive a Nasdaq deficiency notice in March 2025?

LeddarTech received the notice because its stock price remained below the minimum requirement of $1.00 per share for 30 consecutive business days (February 4 - March 18, 2025).

How long does LeddarTech (LDTC) have to regain Nasdaq compliance?

LeddarTech has been given 180 calendar days to regain compliance with Nasdaq's minimum bid price requirement.

Will LeddarTech (LDTC) be immediately delisted from Nasdaq?

No, LDTC shares will continue trading on Nasdaq while the company works to meet compliance requirements during the 180-day grace period.

What happens if LeddarTech (LDTC) fails to meet Nasdaq's minimum bid requirement?

If LDTC fails to regain compliance, it risks potential delisting from the Nasdaq Capital Market.