ZOOZ Power Ltd. announces a $12 million Standby Equity Purchase Agreement with Yorkville for flexible financing to support growth.
Quiver AI Summary
ZOOZ Power Ltd., a provider of Flywheel-based power management solutions for electric vehicle charging, announced a Standby Equity Purchase Agreement (SEPA) with YA II PN, Ltd. This deal allows ZOOZ to sell up to $12 million in ordinary shares to Yorkville over two years at 97% of the market price during a three-day pricing period. The agreement aims to support ZOOZ's growth and funding flexibility, with the company maintaining control over the timing and volume of share sales. However, there are limitations on the amount of shares that can be issued and conditions requiring a registration statement with the SEC. ZOOZ plans to leverage this financing strategically as needed, ensuring continued progress in expanding its ultra-fast charging infrastructure while adapting to market demands.
Potential Positives
- ZOOZ Power has secured access to additional funding through a Standby Equity Purchase Agreement, allowing for financial flexibility to support future growth.
- The SEPA enables ZOOZ to raise up to $12 million, providing strategic capital while retaining control over the timing and volume of equity sales.
- This agreement reflects ZOOZ's ongoing efforts to expedite growth in the electric vehicle charging market, aligning with their pioneering technology in power management solutions.
Potential Negatives
- The Standby Equity Purchase Agreement (SEPA) implies a reliance on external funding, which may raise concerns about the company's financial stability and ability to generate capital independently.
- Issuing shares at a discount (97% of the market price) can dilute existing shareholders' equity, potentially leading to reduced stock value in the short term.
- The requirement for a registration statement with the SEC introduces regulatory hurdles and potential delays in accessing the funds, which could hinder the company’s growth plans.
FAQ
What is the Standby Equity Purchase Agreement (SEPA) with Yorkville?
ZOOZ has entered into a SEPA with Yorkville, enabling them to sell up to $12 million in shares over two years.
How will ZOOZ use the funding from the SEPA?
ZOOZ plans to use the funding strategically to support future capital needs and accelerate growth.
What are the pricing terms for the shares sold under the SEPA?
Shares sold to Yorkville will be priced at 97% of the Market Price during a specified three-day pricing period.
Are there any limitations on shares issued to Yorkville?
Yes, the shares owned by Yorkville and its affiliates cannot exceed 4.99% of ZOOZ’s voting power, among other limitations.
What recognition has ZOOZ received recently?
ZOOZ has gained industry recognition due to recent customer installations, demonstrating its innovative technology in EV charging.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ZOOZ Hedge Fund Activity
We have seen 6 institutional investors add shares of $ZOOZ stock to their portfolio, and 0 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- POLAR ASSET MANAGEMENT PARTNERS INC. added 43,593 shares (+inf%) to their portfolio in Q2 2024
- JANE STREET GROUP, LLC added 11,728 shares (+inf%) to their portfolio in Q2 2024
- UBS GROUP AG added 3,425 shares (+inf%) to their portfolio in Q2 2024
- BANK OF AMERICA CORP /DE/ added 685 shares (+inf%) to their portfolio in Q2 2024
- TOWER RESEARCH CAPITAL LLC (TRC) added 300 shares (+inf%) to their portfolio in Q2 2024
- JPMORGAN CHASE & CO added 216 shares (+21600.0%) to their portfolio in Q3 2024
- Y.D. MORE INVESTMENTS LTD added 0 shares (+0.0%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
/Super%20Micro%20Computer%20Inc%20logo%20on%20building-by%20Poetra_RH%20via%20Shutterstock.jpg)
