LeddarTech Holdings Inc. (NASDAQ:LDTC) shares are rocketing on Monday after the company announced a collaboration with Texas Instruments Incorporated (NASDAQ:TXN).

The partnership includes a software license agreement, where TI will make advanced royalty payments to support the joint commercialization of an integrated platform solution for advanced driver assistance systems (ADAS) and autonomous driving (AD) markets.

Under the license arrangement, Texas Instruments has agreed to make advanced royalty payments to catalyze joint commercialization.

The collaboration will allow TI to offer a bundled solution featuring LeddarTech’s LeddarVision AI-based sensor fusion and perception software, pre-integrated and validated on TI’s TDA scalable portfolio of Arm-based processors.

After nearly two years of collaboration, the integrated solution provides an open, high-performance, and cost-efficient platform for ADAS and autonomous driving systems, catering to automotive OEMs and Tier 1 suppliers.

LeddarTech and TI have developed a roadmap of ADAS and AD features, with LeddarVision already running on TI’s TDA4 processors.

The integrated solution has received positive feedback from automotive OEMs and Tier 1 suppliers regarding its specifications and performance.

Frantz Saintellemy, President and CEO of LeddarTech, said, “This agreement with Texas Instruments and their commitment to making advanced royalty payments is a major market validation of LeddarVision and the potential to achieve significant near-term automotive ADAS market success.”

In a separate release, LeddarTech secured a deferral of interest payments, contingent on receiving at least $35 million in equity investments or the first TI royalty installment.

The minimum cash balance covenant is suspended until December 13, 2024, then set at C$1 million until January 31, 2025, rising to C$5 million thereafter.

The bridge loan maturity is extended to December 13, 2024, with an automatic extension to January 31, 2025, upon receiving the first royalty installment.

Price Action: LDDC shares are up 290.1% at $1.21 at the last check Monday.

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This article LeddarTech Rockets As Texas Instruments Backs AI-Driven ADAS Tech With Royalty Deal originally appeared on Benzinga.com

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