The exercise price of LeddarTech’s outstanding Warrants to purchase its common shares was reduced from US $11.50 per Warrant to US $11.17 per Warrant, effective February 9, 2024. LeddarTech expects that this adjustment will be treated under Internal Revenue Code Section 305(c) as a deemed distribution for U.S. federal income tax purposes. Because LeddarTech does not expect that it will maintain calculations of earnings and profits under U.S. federal income tax principles for purposes of determining whether a distribution is a dividend for U.S. federal income tax purposes, it is expected that the full amount of such distribution will be taxed and reported as a dividend for U.S. federal income tax purposes, despite the absence of any actual payment of cash or property to the Warrant holder. Each holder of Warrants should consult their own tax advisor concerning the tax consequences of any deemed distributions.