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LeddarTech Enters Into Amendments to Credit Facility and Bridge Financing Offer

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LeddarTech (Nasdaq: LDTC) has announced a strategic collaboration and software license agreement with Texas Instruments (TI) for ADAS and autonomous driving solutions. TI will provide advanced royalty payments to support joint commercialization. In connection with this, LeddarTech has amended its credit facility with Desjardins and bridge financing arrangements.

Key modifications include: temporary postponement of interest payments from July through December 2024, suspension of minimum cash covenant requirements, and extension of bridge loan maturity. These changes are contingent on receiving TI's first royalty payment installment and securing minimum gross proceeds of US$35 million from equity investments.

LeddarTech (Nasdaq: LDTC) ha annunciato una collaborazione strategica e un accordo di licenza software con Texas Instruments (TI) per soluzioni ADAS e di guida autonoma. TI fornirà pagamenti royalty avanzati per supportare la commercializzazione congiunta. In relazione a ciò, LeddarTech ha modificato la propria linea di credito con Desjardins e gli accordi di finanziamento ponte.

Le modifiche chiave includono: il rinvio temporaneo dei pagamenti degli interessi da luglio a dicembre 2024, la sospensione dei requisiti minimi di liquidità e l'estensione della scadenza del prestito ponte. Questi cambiamenti sono subordinati al ricevimento della prima rata dei pagamenti royalty da parte di TI e all'acquisizione di proventi lordi minimi di 35 milioni di dollari americani da investimenti in capitale.

LeddarTech (Nasdaq: LDTC) ha anunciado una colaboración estratégica y un acuerdo de licencia de software con Texas Instruments (TI) para soluciones ADAS y de conducción autónoma. TI proporcionará pagos de regalías avanzados para apoyar la comercialización conjunta. En relación con esto, LeddarTech ha modificado su línea de crédito con Desjardins y los acuerdos de financiación puente.

Las modificaciones clave incluyen: el aplazamiento temporal de los pagos de intereses de julio a diciembre de 2024, la suspensión de los requisitos mínimos de liquidez y la extensión del vencimiento del préstamo puente. Estos cambios dependen de recibir el primer pago de regalías de TI y asegurar ingresos brutos mínimos de 35 millones de dólares estadounidenses de inversiones en capital.

LeddarTech (Nasdaq: LDTC)는 Texas Instruments (TI)와 ADAS 및 자율 주행 솔루션을 위한 전략적 협력 및 소프트웨어 라이선스 계약을 체결했다. TI는 공동 상용화를 지원하기 위해 선급 로열티 지급을 제공할 예정이다. 이와 관련하여 LeddarTech는 Desjardins와의 신용 시설을 수정하고 브릿지 금융 협정을 체결했다.

주요 수정 사항으로는 2024년 7월부터 12월까지 이자 지급의 일시적 연기, 최소 현금 약정 요건의 중단 및 브릿지 대출 만기의 연장이 포함된다. 이러한 변경 사항은 TI의 첫 번째 로열티 지급 분할을 수령하고 자본 투자로부터 3천5백만 달러의 최소 총 수익을 확보하는 조건을 갖춘다.

LeddarTech (Nasdaq: LDTC) a annoncé une collaboration stratégique et un accord de licence logicielle avec Texas Instruments (TI) pour des solutions ADAS et de conduite autonome. TI fournira des paiements de redevances avancés pour soutenir la commercialisation conjointe. Dans ce contexte, LeddarTech a modifié sa ligne de crédit avec Desjardins et ses accords de financement relais.

Les modifications clés comprennent : le report temporaire des paiements d'intérêts de juillet à décembre 2024, la suspension des exigences de covenants de liquidité minimale et l'extension de l'échéance du prêt relais. Ces changements sont conditionnés à la réception du premier versement de redevances de TI et à l'obtention de produits bruts minimums de 35 millions de dollars américains provenant d'investissements en capital.

LeddarTech (Nasdaq: LDTC) hat eine strategische Zusammenarbeit und einen Softwarelizenzvertrag mit Texas Instruments (TI) für ADAS- und autonome Fahrlösungen angekündigt. TI wird fortgeschrittene Lizenzzahlungen leisten, um die gemeinsame Vermarktung zu unterstützen. In diesem Zusammenhang hat LeddarTech seine Kreditfazilität mit Desjardins und Brückenfinanzierungsvereinbarungen geändert.

Zu den wesentlichen Änderungen gehören: vorübergehende Stundung der Zinszahlungen von Juli bis Dezember 2024, Aussetzung der Mindestliquiditätsanforderungen und Verlängerung der Laufzeit des Brückendarlehens. Diese Änderungen sind abhängig vom Erhalt der ersten Lizenzzahlung von TI und der Sicherung eines Mindestbruttoerlöses von 35 Millionen US-Dollar aus Beteiligungsinvestitionen.

Positive
  • Strategic collaboration and licensing agreement secured with Texas Instruments
  • Advanced royalty payments to be received from Texas Instruments
  • Temporary relief from interest payments through December 2024
  • Temporary suspension of minimum cash covenant requirements
Negative
  • Company requires minimum US$35 million in equity investments
  • Need for credit facility amendments suggests potential cash flow challenges
  • Increased financial obligations with monthly C$125,000 payments to Desjardins

Insights

The strategic collaboration with Texas Instruments and subsequent credit facility amendments represent significant financial restructuring for LeddarTech. The agreement includes advanced royalty payments from TI, which will provide important working capital. The credit amendments with Desjardins offer important breathing room by postponing interest payments through December 2024 and temporarily suspending minimum cash requirements, conditional on receiving TI's first royalty installment.

The bridge financing extension to December 13, 2024 (potentially to January 31, 2025) provides additional financial flexibility. However, the company needs to secure $35M in equity investments to meet certain conditions, highlighting ongoing capital needs. The monthly C$125,000 payments to Desjardins and reduced minimum cash balance requirements from C$5M to C$1M suggest tight liquidity management.

The strategic collaboration between LeddarTech and Texas Instruments is a significant development in the ADAS and autonomous driving space. TI's commitment through prepaid royalties validates LeddarTech's AI-based LeddarVision™ technology and suggests strong commercial potential. This partnership could accelerate market penetration by combining LeddarTech's software expertise with TI's hardware capabilities and extensive automotive industry reach.

However, the complex financial restructuring indicates challenges in commercialization and cash flow generation. The success of this collaboration will largely depend on the market adoption of their integrated platform solution and the ability to convert technical advantages into sustainable revenue streams.

QUEBEC CITY, Canada, Dec. 09, 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 LeddarTech and Texas Instruments (“TI”) have entered into a strategic collaboration agreement and a software license agreement 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.

In connection with the collaboration and license agreements with TI and the advanced royalty payments provided thereunder (the “TI Pre-paid Royalty Fee”), LeddarTech 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”), pursuant to which Desjardins has agreed to, among other things: (i) temporarily postpone payment of interest for the months of July through December 2024 until the earlier of (x) the date of the final disbursement of one or several equity investments in the borrower for minimum gross proceeds amount of US$35,000,000 in the aggregate (the “Short-Term Outside Date”), and (y) January 31, 2025 assuming the disbursement to LeddarTech of the full first installment of the TI Pre-paid Royalty Fee; and (ii) temporarily suspend the minimum cash covenant under the Desjardins Credit Facility until the earlier of (x) December 13, 2024, and (y) the date of disbursement to LeddarTech of the full first installment of the TI Pre-paid Royalty Fee, after which time LeddarTech will be required to maintain a minimum cash balance of C$1,000,000 until the earlier of (x) the Short-Term Outside Date, and (y) January 31, 2025, and a minimum cash balance of C$5,000,000 at all times after such date.
  • 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”) pursuant to which the Bridge Lenders have agreed, among other things, to extend the maturity of the bridge loan to December 13, 2024, which date will automatically be extended upon the disbursement by TI to LeddarTech of the full first installment of the TI Pre-paid Royalty Fee, to the earlier of (x) January 31, 2025 and (y) the business day following the Short-Term Outside Date.

The Fourteenth Amending Agreement to the Desjardins Credit Facility also provides for a monthly payment by LeddarTech to Desjardins of C$125,000 until the Short-Term Outside Date, which payments will be due and payable on the earlier of the Short-Term Outside Date and December 13, 2024, provided that if the full first installment of the TI Pre-paid Royalty Fee is received on or before December 13, 2024, the deferral will extend to the earlier of (x) the Short-Term Outside Date, and (y) January 31, 2025.

The foregoing descriptions of the Fourteenth Amending Agreement to the Desjardins Credit Facility and the Second Amending Agreement to the Bridge Financing Offer do not purport to be complete and are qualified in their entirety by reference to such amendments, copies of which will be 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

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 strategic partnership between LeddarTech (LDTC) and Texas Instruments announced in December 2024?

LeddarTech and Texas Instruments entered into a strategic collaboration and software license agreement for ADAS and autonomous driving solutions, with TI agreeing to make advanced royalty payments.

What are the key amendments to LeddarTech's (LDTC) credit facility with Desjardins in December 2024?

The amendments include postponement of interest payments through December 2024, temporary suspension of minimum cash covenant, and new requirements for maintaining minimum cash balances of C$1,000,000 to C$5,000,000 based on certain conditions.

How much equity investment does LeddarTech (LDTC) need to secure according to the December 2024 announcement?

LeddarTech needs to secure minimum gross proceeds of US$35,000,000 in equity investments as specified in the credit facility amendments.

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