LeddarTech enters into amendments to credit facility, bridge financing

LeddarTech Holdings (LDTC) announced that LeddarTech and Texas Instruments (TXN) have entered into a strategic collaboration agreement and a software license agreement to enable a comprehensive, integrated platform solution for advanced driver assistance systems and autonomous driving 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, LeddarTech entered into: a fourteenth amending agreement with Federation des caisses Desjardins du Quebec with respect to the amended and restated financing offer dated as of April 5, 2023, pursuant to which Desjardins has agreed to, among other things: temporarily postpone payment of interest for the months of July through December 2024 until the earlier of the date of the final disbursement of one or several equity investments in the borrower for minimum gross proceeds amount of $35,000,000 in the aggregate, and January 31, 2025 assuming the disbursement to LeddarTech of the full first installment of the TI Pre-paid Royalty Fee; and temporarily suspend the minimum cash covenant under the Desjardins Credit Facility until the earlier of December 13, 2024, and 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 the Short-Term Outside Date, and January 31, 2025, and a minimum cash balance of C$5,000,000 at all times after such date. a second amending agreement with the initial bridge lenders and certain members of management and the board of directors with respect to the bridge financing offer dated as of August 16, 2024 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 January 31, 2025 and 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 the Short-Term Outside Date, and January 31, 2025.