LeddarTech Obtains Additional Waiver Under Credit Facility
LeddarTech Holdings Inc. (Nasdaq: LDTC), an automotive software company, has secured a Tenth Amending Agreement with Fédération des caisses Desjardins du Québec regarding its credit facility. This waiver temporarily reduces the required Minimum Cash Covenant to C$1.3 million from July 26, 2024, through August 5, 2024. After this period, the company must maintain a minimum cash balance of C$5.0 million.
LeddarTech is currently in discussions with shareholders and potential investors to secure financing, which may include funds for near-term obligations. However, there's no guarantee that the company will successfully complete this Financing Transaction. Any securities offered in this transaction may not be registered under the Securities Act of 1933.
LeddarTech Holdings Inc. (Nasdaq: LDTC), un'azienda di software per il settore automotive, ha siglato un Decimo Accordo di Modifica con la Fédération des caisses Desjardins du Québec relativamente alla sua linea di credito. Questa deroga riduce temporaneamente il requisito del Minimo Cash Covenant a 1,3 milioni di dollari canadesi dal 26 luglio 2024 al 5 agosto 2024. Dopo questo periodo, l'azienda deve mantenere un saldo di cassa minimo di 5,0 milioni di dollari canadesi.
LeddarTech è attualmente in trattativa con gli azionisti e potenziali investitori per reperire finanziamenti, che potrebbero includere fondi per obbligazioni a breve termine. Tuttavia, non c'è alcuna garanzia che l'azienda completerà con successo questa Transazione di Finanziamento. Qualsiasi titolo offerto in questa transazione potrebbe non essere registrato ai sensi del Securities Act del 1933.
LeddarTech Holdings Inc. (Nasdaq: LDTC), una empresa de software automotriz, ha asegurado un Décimo Acuerdo de Modificación con la Fédération des caisses Desjardins du Québec referente a su línea de crédito. Esta exención reduce temporalmente el requisito del Mínimo Capital en Efectivo a 1.3 millones de dólares canadienses desde el 26 de julio de 2024 hasta el 5 de agosto de 2024. Después de este período, la empresa debe mantener un saldo mínimo de efectivo de 5.0 millones de dólares canadienses.
LeddarTech se encuentra actualmente en conversaciones con accionistas e inversores potenciales para asegurar financiamiento, que podría incluir fondos para obligaciones a corto plazo. Sin embargo, no hay garantía de que la empresa complete con éxito esta Transacción de Financiamiento. Cualquier valor ofrecido en esta transacción puede no estar registrado bajo la Ley de Valores de 1933.
LeddarTech Holdings Inc. (Nasdaq: LDTC)는 자동차 소프트웨어 회사으로, 퀘벡의 Desjardins 신탁과 관련하여 제10차 수정 계약을 체결했습니다. 이 면제는 최소 현금 조항을 2024년 7월 26일부터 2024년 8월 5일까지 130만 캐나다달러로 일시적으로 줄여줍니다. 이 기간이 지나면 회사는 500만 캐나다달러의 최소 현금 잔고를 유지해야 합니다.
LeddarTech는 현재 주주 및 잠재 투자자들과 논의 중에 있으며, 이는 단기 의무를 위한 자금을 포함할 수 있는 자금 확보를 위한 것입니다. 그러나 회사가 이 자금 조달 거래를 성공적으로 완료할 수 있다는 보장은 없습니다. 이 거래에서 제공되는 증권은 1933년 증권법에 따라 등록되지 않을 수 있습니다.
LeddarTech Holdings Inc. (Nasdaq: LDTC), une entreprise de logiciels automobiles, a sécurisé un Dixième Accord de Modification avec la Fédération des caisses Desjardins du Québec concernant sa facilité de crédit. Cette dérogation réduit temporairement le seuil de liquidité minimum requis à 1,3 million de dollars canadiens du 26 juillet 2024 au 5 août 2024. Après cette période, l'entreprise doit maintenir un solde de trésorerie minimum de 5,0 millions de dollars canadiens.
LeddarTech est actuellement en discussion avec des actionnaires et des investisseurs potentiels pour sécuriser un financement, qui pourrait inclure des fonds pour des obligations à court terme. Cependant, il n'y a aucune garantie que l'entreprise réussira à mener à bien cette Transaction de Financement. Tous les titres offerts dans cette transaction pourraient ne pas être enregistrés en vertu de la Loi sur les valeurs mobilières de 1933.
LeddarTech Holdings Inc. (Nasdaq: LDTC), ein Unternehmen für Automobilsoftware, hat eine Zehnte Änderungsvereinbarung mit der Fédération des caisses Desjardins du Québec über seine Kreditfazilität gesichert. Diese Erlaubnis senkt vorübergehend die erforderliche Mindestcashverpflichtung auf 1,3 Millionen kanadische Dollar vom 26. Juli 2024 bis zum 5. August 2024. Nach diesem Zeitraum muss das Unternehmen einen Mindestcashbestand von 5,0 Millionen kanadischen Dollar aufrechterhalten.
LeddarTech führt derzeit Gespräche mit Aktionären und potenziellen Investoren, um eine Finanzierung zu sichern, die möglicherweise Mittel für kurzfristige Verpflichtungen einschließt. Es besteht jedoch keine Garantie, dass das Unternehmen diese Finanzierungstransaktion erfolgreich abschließen wird. Alle in dieser Transaktion angebotenen Wertpapiere könnten nicht gemäß dem Securities Act von 1933 registriert sein.
- Temporary reduction of Minimum Cash Covenant to C$1.3 million, providing short-term financial flexibility
- Ongoing discussions with shareholders and potential investors for additional financing
- Need for continuous amendments to credit facility suggests financial strain
- Requirement to maintain C$5.0 million cash balance after August 5, 2024, may be challenging
- Uncertainty surrounding the completion of the Financing Transaction
- Potential for unregistered securities offering, which may limit investor participation
LeddarTech's recent waiver agreement with Desjardins signals significant financial strain and raises concerns about the company's liquidity position. The reduction of the Minimum Cash Covenant to
This development, coupled with ongoing discussions for additional financing, suggests that LeddarTech is struggling to meet its financial obligations. The company's pursuit of both near-term funding and a larger financing transaction highlights the urgency of its capital needs.
Investors should be wary of potential dilution risks if the company issues new equity to raise funds. Moreover, the lack of assurance regarding the success of these financing efforts raises questions about LeddarTech's ability to continue as a going concern.
The repeated amendments to the credit facility and the need for waivers indicate weakening financial flexibility. This situation could impact LeddarTech's ability to invest in R&D and maintain its competitive edge in the automotive software market.
Given these circumstances, investors should closely monitor LeddarTech's cash burn rate, upcoming financial obligations and the progress of its financing efforts. The outcome of these financing discussions will be crucial for the company's short-term survival and long-term growth prospects.
The waiver agreement between LeddarTech and Desjardins raises several legal and regulatory considerations. First, the company's disclosure of this material information complies with its obligations under securities laws, demonstrating transparency to investors.
However, the repeated amendments to the credit facility and the need for waivers could potentially trigger covenants in other agreements or impact relationships with other creditors. Investors should be aware that cross-default provisions in other debt instruments might be activated if LeddarTech fails to meet its obligations under the Desjardins Credit Facility.
The company's statement regarding the potential unregistered offering of securities in the Financing Transaction is a standard legal disclaimer. It indicates that any securities issued may be exempt from registration requirements, which could limit their transferability and potentially affect their value.
From a governance perspective, the board of directors and management team must carefully navigate their fiduciary duties during this period of financial stress. They need to balance the immediate need for capital with the long-term interests of shareholders and other stakeholders.
Lastly, if LeddarTech fails to secure necessary financing or meet its financial obligations, it could face increased legal risks, including potential bankruptcy proceedings or shareholder litigation. Investors should closely monitor the company's SEC filings for any updates on its financial position and legal status.
QUEBEC CITY, Canada, July 29, 2024 (GLOBE NEWSWIRE) -- LeddarTech Holdings Inc. (“LeddarTech” or the “Company”) (Nasdaq: LDTC), an automotive software company that provides patented disruptive AI-based low-level sensor fusion and perception software technology, LeddarVision™, for ADAS, AD and parking applications, announces it entered into a Tenth Amending Agreement (the “Waiver”) with Fédération des caisses Desjardins du Québec (“Desjardins”) with respect to the Amended and Restated Financing Offer dated as of April 5, 2023 (as amended, the “Desjardins Credit Facility”). As previously announced by the Company on July 5, 2024, pursuant to a Ninth Amending Agreement to the Desjardins Credit Facility, the Company was required to maintain an unencumbered cash balance (the “Minimum Cash Covenant”) of C
The foregoing description of the Waiver does not purport to be complete and is qualified in its entirety by reference to the Waiver, a copy of which has been filed under the Company’s SEDAR+ and EDGAR profiles at www.sedarplus.ca and www.sec.gov, respectively. The foregoing also should be read in conjunction with the disclosures set forth in the Company’s Annual Report on Form 20-F for the year ended September 30, 2023 as filed with the Securities and Exchange Commission and under the Company’s SEDAR+ profile on January 31, 2024, including the disclosures set forth under “Item 3.D – Key Information – Risk Factors” contained therein.
The Company continues to progress its discussions with several of its principal shareholders and other potential investors to secure the financing described in the Company’s press release issued on July 5, 2024, which may include funding to meet near term obligations while the Company continues to seek to close the larger financing (collectively, the “Financing Transaction”). 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. 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. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in the Financing Transaction, nor shall there be any sale of such securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
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 160 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.
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 new Minimum Cash Covenant for LeddarTech (LDTC) from July 26 to August 5, 2024?
What will be LeddarTech's (LDTC) minimum cash balance requirement after August 5, 2024?
Is LeddarTech (LDTC) seeking additional financing as of July 29, 2024?
Are the securities in LeddarTech's (LDTC) potential Financing Transaction registered under the Securities Act of 1933?
