LeddarTech Announces Receipt of the First Installment of the TI Pre-Paid Royalty Fee

Rhea-AI Summary

LeddarTech Holdings (Nasdaq: LDTC) has received the first full installment of advanced royalty payments from Texas Instruments (TI) under their strategic collaboration and software license agreement announced on December 9, 2024. The agreement aims to develop an integrated platform solution for ADAS and autonomous driving markets.

Following this payment, conditions have been met in both the Fourteenth Amending Agreement with Desjardins and the Second Amending Agreement with Bridge Lenders, establishing the short-term outside date as January 31, 2025. These amendments were related to the company's credit facility and bridge financing arrangements.

Positive

• Received first installment of pre-paid royalty payment from Texas Instruments
• Successfully met conditions for credit facility and bridge financing amendments
• Secured strategic collaboration with major industry player (TI) for ADAS/AD markets

Negative

• Reliance on bridge financing and credit facility amendments indicates potential liquidity concerns

Insights

Financial Analyst

This development marks a important milestone for LeddarTech's financial stability and strategic growth. The receipt of the first installment of TI's pre-paid royalty represents immediate cash flow and validates the commercial viability of their AI-based sensor fusion technology. The agreement extension with Desjardins and Bridge Lenders to January 31, 2025, provides vital breathing room for operations. For a company with a $51.7M market cap, securing advance royalties from an industry giant like Texas Instruments significantly strengthens their financial position and reduces near-term funding pressures. The strategic collaboration could accelerate market penetration in the ADAS and autonomous driving sectors, potentially creating substantial recurring revenue streams.

Tech Industry Analyst

The strategic collaboration between LeddarTech and Texas Instruments represents a significant technological partnership in the ADAS market. TI's commitment through advance royalty payments validates LeddarVision's AI-based sensor fusion technology and positions it as a potentially important component in future autonomous driving systems. This integration could create a comprehensive platform solution that addresses the growing demand for sophisticated ADAS capabilities. The partnership leverages TI's extensive market reach and manufacturing capabilities with LeddarTech's innovative software, potentially accelerating the adoption of advanced driver assistance technologies across the automotive industry.

Conditions in the Amendments to Credit Facility and Bridge Financing Offer that were related to the receipt of the First Installment of the TI Pre-Paid Royalty Fee have been met

QUEBEC CITY, Canada, Dec. 12, 2024 (GLOBE NEWSWIRE) -- LeddarTech^® Holdings Inc. (“LeddarTech”) (Nasdaq: LDTC), an automotive software company that provides patented disruptive AI-based low-level sensor fusion and perception software technology, LeddarVision™, today announced that it has received the first full installment of the advanced royalty payments provided under the strategic collaboration agreement and software license agreement entered into between LeddarTech and Texas Instruments (“TI”), as announced on December 9, 2024, to enable a comprehensive, integrated platform solution for advanced driver assistance systems (ADAS) and autonomous driving (AD) markets. Under the license agreement, TI has agreed to make advanced royalty payments to catalyze joint commercialization (the “TI Pre-paid Royalty Fee”).

In connection with the collaboration and license agreements with TI and the TI Pre-paid Royalty Fee, LeddarTech also announced on December 9, 2024 that it entered into a fourteenth amending agreement (the “Fourteenth Amending Agreement”) with Fédération des caisses Desjardins du Québec (“Desjardins”) with respect to the amended and restated financing offer dated as of April 5, 2023 (the “Desjardins Credit Facility”) and a second amending agreement (the “Second Amending Agreement”) with the initial bridge lenders and certain members of management and the board of directors (collectively, the “Bridge Lenders”) with respect to the bridge financing offer dated as of August 16, 2024 (the “Bridge Financing Offer”). Both the Fourteenth Amending Agreement and the Second Amending Agreement contain certain conditions that were to become applicable in the event that the full first installment of the TI Pre-paid Royalty Fee was not received by December 13, 2024. With the payment received, the conditions have been met to establish the short-term outside date as late as January 31, 2025. Please refer to the press release of December 9, 2024 for further details as well as the Fourteenth Amending Agreement to the Desjardins Credit Facility and the Second Amending Agreement to the Bridge Financing Offer which have been filed under LeddarTech’s SEDAR+ and EDGAR profiles at www.sedarplus.ca and www.sec.gov, respectively.

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) the possibility that anticipated benefits of LeddarTech’s recent business combination will not be realized; (ii) the risk that shareholder litigation in connection with the business combination or other settlements or investigations may result in significant costs of defense, indemnification and liability; (iii) changes in general economic and/or industry-specific conditions; (iv) possible disruptions from the business combination that could harm LeddarTech’s business; (v) the ability of LeddarTech to retain, attract and hire key personnel; (vi) potential adverse reactions or changes to relationships with customers, employees, suppliers or other parties; (vii) potential business uncertainty, including changes to existing business relationships following the business combination that could affect LeddarTech’s financial performance; (viii) legislative, regulatory and economic developments; (ix) unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism, outbreak or escalation of war or hostilities and any epidemic, pandemic or disease outbreak (including COVID-19), as well as management’s response to any of the aforementioned factors; (x) access to capital and financing and LeddarTech’s ability to maintain compliance with debt covenants; (xi) LeddarTech’s ability to execute its business model, achieve design wins and generate meaningful revenue; and (xii) 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 Annual Report on Form 20-F for the fiscal year ended September 30, 2023. 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:
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 significance of LeddarTech (LDTC) receiving the TI pre-paid royalty payment?

The payment fulfills conditions for LeddarTech's credit facility and bridge financing amendments, extending the short-term outside date to January 31, 2025, and advances the strategic collaboration for ADAS and autonomous driving solutions.

What is the purpose of LeddarTech's (LDTC) collaboration with Texas Instruments?

The collaboration aims to develop and commercialize an integrated platform solution for advanced driver assistance systems (ADAS) and autonomous driving (AD) markets.

How does the TI payment affect LeddarTech's (LDTC) financing agreements?

The payment satisfies conditions in both the Fourteenth Amending Agreement with Desjardins and the Second Amending Agreement with Bridge Lenders, preventing potential adverse conditions from becoming applicable.

What is the new deadline established for LeddarTech (LDTC) following the TI payment?

Following the payment, the short-term outside date has been established as January 31, 2025.