LeddarTech Announces Potential Funding of Up to $9 Million and Conversion of $1.5 Million in Convertible Notes at a Price Above Market, each share valued at $2.00
LeddarTech Secures Bridge Financing of Up to $9 Million
LeddarTech Holdings Inc., an automotive software company specializing in AI-based low-level sensor fusion and perception software technology, has announced a bridge loan financing of up to US$9 million. The financing is a crucial step towards the company's goal of becoming the most widely adopted sensor fusion and perception software solution for safer global mobility.
The bridge loan financing, referred to as the Bridge Financing, is composed of two tranches. The first tranche of US$6.0 million will be funded immediately, while the second tranche of US$3.0 million is set to be funded on or about October 15, 2024. The Bridge Loans will be issued at a 25% original issue discount and will mature on November 15, 2024. They will be due and payable earlier upon the occurrence of certain events, such as a change in control.
FS Investors and Investissement Québec (Bridge Lenders) are involved in the Bridge Financing. Notably, FS Investors has agreed to convert US$1.5 million of its existing convertible notes into common shares at an above-market conversion price of US$2.00 per share.
The Bridge Financing constitutes a "related-party transaction" under Canadian securities laws, as FS Investors and Investissement Québec are insiders of the Company. The Company is relying on the exemption from the formal valuation and minority shareholder approval requirements contained in Regulation 61-101 on the basis of the "financial hardship" exemption.
It is essential to note that the Bridge Loans are not registered under the Securities Act of 1933, as amended or applicable State securities laws. As a result, the Bridge Loans may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption. No sales of any securities will be made in any jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
LeddarTech, a global software company headquartered in Quebec City with R&D centres in Montreal and Tel Aviv, Israel, has over 160 patent applications (87 granted) enhancing ADAS, AD, and parking capabilities. The company's technology is scalable, cost-effective, and available to OEMs and Tier 1-2 suppliers for efficient implementation of automotive and off-road vehicle ADAS solutions.
For more information about LeddarTech, visit their website and various social media platforms. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. Maxim Group LLC is acting as financial advisor to the Company for the Bridge Financing.
The company's future financing and the exact date when it will receive the seven million US dollars in financing and the one million US dollars from the restructured promissory notes under market conditions from its major shareholders FS Investors and Investissement Québec, as well as its senior lender Fédération des caisses Desjardins du Québec, have not been specified.
LeddarTech's mission is to empower the autonomy journey by developing and providing AI-based low-level sensor fusion and perception software solutions that meet the needs of the world's leading automotive OEMs and Tier 1-2 suppliers. With this bridge financing in place, the company is one step closer to achieving its goal of safer global mobility.
Read also:
- Understanding Hemorrhagic Gastroenteritis: Key Facts
- Stopping Osteoporosis Treatment: Timeline Considerations
- Trump's Policies: Tariffs, AI, Surveillance, and Possible Martial Law
- Expanded Community Health Involvement by CK Birla Hospitals, Jaipur, Maintained Through Consistent Outreach Programs Across Rajasthan
