LeddarTech adjusts credit agreement and reveals receipt of Nasdaq warning notices

LeddarTech, a global software company headquartered in Quebec with R&D centers in Montreal and Tel Aviv, Israel, has announced an Eleventh Amending Agreement with Fédération des caisses Desjardins du Québec. This agreement aims to provide temporary financial relief for the company.

Under the terms of the agreement, LeddarTech will temporarily reduce the required Minimum Cash Covenant. From August 6, 2024, through August 14, 2024, the covenant will be reduced to C$250,000. From August 15, 2024, until the earlier of the Short-Term Outside Date (as defined below) and November 15, 2024, the covenant will be reduced to C$1,000,000. After the earlier of the Short-Term Outside Date and November 15, 2024, the covenant will be temporarily reduced to C$5,000,000 at all times.

The agreement also 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. Additionally, the Amendment and Waiver provides for a monthly payment by the Company to Desjardins of C$125,000 until the Short-Term Outside Date.

Frantz Saintellemy, President and CEO of LeddarTech, expressed his satisfaction with the continued support of Desjardins. He looks forward to providing an update when they release their third-quarter financial results on August 14.

The company has received notices from the Nasdaq Stock Market LLC indicating non-compliance with minimum bid price, market value of publicly held shares, and market value of listed securities. LeddarTech has 180 days to regain compliance with the Nasdaq Listing Requirements. The company will evaluate available options to regain compliance.

LeddarTech develops AI-based low-level sensor fusion and perception software solutions for Advanced Driver-Assistance Systems (ADAS), autonomous driving, and parking applications. The company has over 160 patent applications (87 granted) that enhance these capabilities.

The 11th credit financing agreement with LeddarTech Holdings Inc. was concluded with National Bank of Canada. The company's common shares will continue to be listed and traded on the Nasdaq Global Market under the symbol "LDTC."

LeddarTech continues to discuss with investors for a funding that may include securities not registered under the Securities Act of 1933, as amended, or State securities laws. Additional information about LeddarTech is accessible at www.LeddarTech.com and on LinkedIn, Twitter, Facebook, and YouTube.

It's important to note that there can be no assurance that the Company will be able to regain compliance or maintain compliance with other Nasdaq Global Market continued listing requirements. There can also be no assurance that 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.

The foregoing should be read in conjunction with the disclosures set forth in the Company's Report of Foreign Private Issuer on Form 6-K and Annual Report on Form 20-F.