LeddarTech Secures US$3 Million in Second Tranche of Bridge Financing Amid Financial Challenges

LeddarTech Receives Second Tranche of Bridge Financing

LeddarTech Holdings Inc. (Nasdaq: LDTC), a Quebec-based automotive software company specializing in AI-based sensor fusion and perception software for ADAS and autonomous driving applications, has announced the receipt of US$3 million as part of the second tranche of its previously announced bridge financing 1

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Details of the Bridge Financing

The bridge financing, totaling up to US$9 million, was made available by principal shareholders including FS Investors, Investissement Québec, and Fédération des caisses Desjardins du Québec 2

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1. First tranche: US$6 million, funded on August 19, 2024
2. Second tranche: Up to US$3 million, subject to conditions

The second tranche was contingent on the absence of defaults under the Bridge Loans and the company securing a commitment from a strategic investor to invest a minimum of US$5 million in a subsequent equity capital raise 3

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Additional Financial Maneuvers

In connection with the bridge financing:

• FS Investors converted US$1 million of existing convertible notes into common shares at an above-market price of US$2 per share
• The company received approximately US$334,000 in additional bridge loans from certain management members and board directors 4

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Regulatory Considerations

The bridge financing constitutes a "related-party transaction" under Canadian securities laws. However, due to the company's serious financial difficulties, LeddarTech is relying on exemptions from formal valuation and minority shareholder approval requirements 1

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Company Overview

LeddarTech, founded in 2007, develops AI-based low-level sensor fusion and perception software for automotive applications. The company's technology aims to enhance ADAS, autonomous driving, and parking capabilities. With over 160 patent applications (87 granted), LeddarTech positions itself as an innovator in the automotive software sector 2

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