Gauzy Closes $7 Million Share Sale to Fund Debt Settlement

Gauzy Ltd. (Nasdaq: GAUZ) closed a $7 million private share placement led by Chief Executive Eyal Peso, financing a court-approved settlement covering about $61 million in pre-petition liabilities. A $1.638 million portion of the proceeds is tied to a separate French court decision involving the company’s subsidiary Safety Tech SAS.

The placement closed Oct. 15. Investors agreed to buy 2,383,279 ordinary shares at $2.9371 each. Under the settlement, trustees Adv. Ehud Gindes and Adv. (CPA) Simion Keidar are to receive another 953,311 shares.

The $1.638 million will be held by the settlement trustees and returned to the applicable investors, with the corresponding shares canceled, if the Lyon Commercial Court has not approved Safety Tech SAS’s continuation plan by Nov. 13.

The Tel Aviv-Jaffa District Court’s approval of the settlement took effect Sept. 8. Its payment schedule starts April 1, 2027, with monthly payments rising from $200,000 to $300,000 over six years. The schedule lists about $18 million in nominal payments, with exit-event proceeds also allocated to creditors under the settlement.

“This investment reflects my personal conviction, and that of our management team, in Gauzy’s technology, our customers and our long-term growth strategy,” Peso said.