LeddarTech enters credit facility amendment, receives Nasdaq deficiency notices

LeddarTech entered into an Eleventh Amending Agreement with Federation des caisses Desjardins du Quebec with respect to the Amended and Restated Financing Offer dated as of April 5, 2023. 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 of C$3.5 million from July 5, 2024 through July 6, 2024, and C$1.8 million from July 7, 2024 through July 26, 2024. Pursuant to a Tenth Amending Agreement to the Desjardins Credit Facility dated July 26, 2024, Desjardins had temporarily reduced the required Minimum Cash Covenant to C$1.3 million from July 26, 2024 through August 5, 2024, after which time the Company was to be obligated to maintain a minimum cash balance of C$5.0 million. Pursuant to the Amendment and Waiver, among other things, Desjardins has agreed to: temporarily reduce the required Minimum Cash Covenant to C$250,000 from August 6, 2024 through August 14, 2024, C$1,000,000 from August 15, 2024 until the earlier of the Short-Term Outside Date and November 15, 2024, and C$5,000,000 at all times after the earlier of the Short-Term Outside Date and November 15, 2024; and temporarily postpone payment of interest for the months of July, August, September and October 2024 until the earlier of the date of disbursement of an equity investment in the Borrower for a minimum gross proceeds amount of US$35,000,000 and November 15, 2024. The Amendment and Waiver provides for a monthly payment by the Company 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 November 15, 2024. The Company also announces that it has received notices from the Listing Qualifications Department of the Nasdaq Stock Market indicating that the Company did not comply with the following Nasdaq Listing Rules within certain time periods as required for continued listing on the Nasdaq Global Market: minimum bid price of US$1.00 per share, minimum market value of publicly held shares of US$15,000,000, and minimum market value of listed securities of US$50,000,000. The Notices also indicated that the Company will be afforded a period of 180 calendar days to regain compliance. The Company intends to actively monitor the closing bid price, the MVPHS and the MVLS of its common shares and will evaluate available options to regain compliance with the Listing Requirements. However, there can be no assurance that the Company will be able to regain compliance with such Listing Requirements or maintain compliance with any of the other Nasdaq Global Market continued listing requirements. The Notices have no immediate effect on the listing of the Company’s common shares, which will continue to be listed and traded on the Nasdaq Global Market under the symbol “LDTC,” subject to the Company’s compliance with the other continued listing requirements of the Nasdaq Global Market.