LeddarTech Holdings Inc., an automotive software company specializing in AI-based sensor fusion and perception software, announced a bridge financing deal on August 19, 2024. The agreement involves bridge loans totaling up to US$9.0 million from principal shareholders FS Investors and Investissement Québec, as well as senior lender Fédération des caisses Desjardins du Québec. The financing includes an option for the lenders to convert their loans into common shares at a significant premium. Additionally, FS Investors agreed to convert US$1.5 million of existing convertible notes into common shares at an above-market price. The first tranche of US$6.0 million is funded immediately, with a second tranche of US$3.0 million contingent on certain conditions, including a strategic investor commitment...Show More

LeddarTech Holdings Inc., an automotive software company specializing in AI-based sensor fusion and perception software, announced a bridge financing deal on August 19, 2024. The agreement involves bridge loans totaling up to US$9.0 million from principal shareholders FS Investors and Investissement Québec, as well as senior lender Fédération des caisses Desjardins du Québec. The financing includes an option for the lenders to convert their loans into common shares at a significant premium. Additionally, FS Investors agreed to convert US$1.5 million of existing convertible notes into common shares at an above-market price. The first tranche of US$6.0 million is funded immediately, with a second tranche of US$3.0 million contingent on certain conditions, including a strategic investor commitment. The bridge loans, bearing interest at 13%, are due by November 15, 2024, and are part of a broader effort to improve LeddarTech's financial condition amidst serious financial difficulties. The transaction is classified as a 'related party transaction' and is exempt from formal valuation and minority shareholder approval requirements due to the company's financial hardship. Maxim Group LLC is advising LeddarTech on the bridge financing, which is not registered under the Securities Act of 1933.