ZOOZ Power Ltd. has completed the first stage of a significant fundraising initiative, raising $5 million in an initial private placement as part of a larger $180 m. financing plan. This transaction, announced in late July, signifies the company’s first step toward adopting Bitcoin as a treasury asset – potentially making ZOOZ the first company dual-listed on Nasdaq and the Tel Aviv Stock Exchange to undertake such a move.
The Private Placement involved about 2.5 m. ordinary shares and prefunded warrants, each priced at $2. Every share or warrant included a warrant to purchase two additional shares at an exercise price of $3.06.
Some of the proceeds will repay existing promissory notes, with the rest allocated for general corporate purposes. After obtaining shareholder approval for future phases, ZOOZ plans to allocate some 95% of the full $180 m. toward building its Bitcoin reserves, following debt repayment.
“We are pleased to have successfully closed the Initial Private Placement as part of this broader financing, marking an important first step in executing our new Bitcoin reserve strategy,” said Jordan Fried, CEO of ZOOZ. “This initial capital infusion reflects investor confidence in our vision, and we look forward to securing shareholder approval for the complete $180 m. Private Placement. With this support, we aim to develop a strategic Bitcoin reserve to enhance long-term shareholder value and position the company for a new era of financial strength and innovation.”
This approach represents a significant shift for ZOOZ, showcasing its role as a forward-looking capital allocator. The company believes shareholders will benefit from what it describes as “long-term, asymmetric upside” through direct exposure to Bitcoin.
However, the strategy carries risks. The company recognizes that its share price could become closely linked to Bitcoin’s volatility, and regulatory uncertainties surrounding digital assets pose a challenge. Broader market factors, such as inflation, global economic shifts, and geopolitical issues like the ongoing conflict in Israel, could also impact the plan’s implementation.
ZOOZ is traded on Nasdaq and the Tel Aviv Stock Exchange under the ticker ZOOZ. The next step is to obtain shareholder approval for the remaining financing, which will determine the scope and timing of its Bitcoin treasury initiative.