News Summary

LeddarTech, a Québec City-based autonomous vehicle software provider, has announced significant workforce reductions, cutting 95 percent of its staff in a bid to manage its financial crisis. The layoffs affect approximately 138 employees across the company. LeddarTech faces the prospect of defaulting on its credit facility with Desjardins, necessitating cash reserves of at least $1.8 million CAD. The company had $9.2 million CAD at the end of March, which declined to $4.1 million CAD by May 8. Despite ongoing discussions, LeddarTech has not secured the necessary financing or relief from its obligations and is considering options such as a sale of its business or assets, strategic investments, or seeking creditor protection. The company has deadlines to share a financing plan and raise additional equity investments, which it doubts it can meet. Founded in 2007, LeddarTech went public on the Nasdaq in 2023 and has seen its stock price fall significantly, now trading at $0.30 USD per share.