Gauzy Announces $7 Million Private Placement Led by Management to Fund Court-Approved Settlement

The financing supports a settlement resolving approximately $61 million in pre-petition liabilities, with some proceeds subject to refund.

Rhea-AI Summary

Gauzy (Nasdaq: GAUZ) closed a $7 million private placement led by Chief Executive Officer Eyal Peso on October 15, 2026. The company agreed to sell 2,383,279 ordinary shares at $2.9371 each to accredited investors to finance its court-approved debt settlement. Another 953,311 ordinary shares will be issued to the settlement trustees.

The settlement received final court approval effective September 8, 2026, and resolves approximately $61 million in pre-petition liabilities. Of the offering's gross proceeds, $1,638,000 will be held by the trustees and refunded to applicable purchasers, with corresponding shares cancelled, if the Lyon Commercial Court does not approve subsidiary Safety Tech SAS's French continuation plan by November 13, 2026.

2 points · 2 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

2 major · 3 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point$7 million in gross proceeds raised through a private placement closed October 15, 2026, to finance the settlement. 1.4× market cap
• Major pointCourt-approved settlement, effective September 8, 2026, resolves approximately $61 million in pre-petition liabilities. 12× market cap

Negative

• Major point2,383,279 ordinary shares at $2.9371 each issued in the private placement dilute existing holders.
• Major point. Forward-looking: it has not happened yet and may not happen.953,311 additional ordinary shares will be issued to settlement trustees, adding dilution.
• Minor point. Forward-looking: it has not happened yet and may not happen.$1,638,000 held by trustees is refundable, with corresponding shares cancelled, absent French continuation-plan approval by November 13, 2026.

News Explained

The placement closed on October 15, 2026; its terms provide for 2,383,279 shares to purchasers and 953,311 to settlement trustees, increasing Gauzy’s share count and reducing existing holders’ percentage ownership absent offsetting changes.

Key Figures

Gross proceeds: $7 million Ordinary shares issued to purchasers: 2,383,279 shares Purchase price: $2.9371 per share +3 more

Gross proceeds

$7 million

Management-led private placement

Ordinary shares issued to purchasers

2,383,279 shares

Private placement

Purchase price

$2.9371 per share

Private placement

Settlement trustee shares

953,311 shares

Issued under the court-approved settlement

Conditional proceeds refund

$1,638,000

Held by trustees and refunded to applicable purchasers if French continuation plan approval is not obtained by November 13, 2026

French plan approval deadline

November 13, 2026

Deadline for Lyon Commercial Court approval of the subsidiary's continuation plan

Historical Context

1 past event · Latest: Sep 18

1 event

1. Sep 18

   Debt settlement

   24h Move

   -17.6%

   Court approved settlement resolving about $61 million; announced binding $7 million PIPE.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

securities purchase agreement, private investment in public equity, pre-petition liabilities

3 terms

securities purchase agreement financial

"entered into a securities purchase agreement with a group of accredited investors"

A securities purchase agreement is a written contract between a buyer and a seller outlining the terms for buying or selling financial assets such as stocks or bonds. It specifies details like the price, quantity, and conditions of the transaction, similar to a shopping list with agreed-upon terms. For investors, it provides clarity and legal protection when transferring ownership of these financial instruments.

private investment in public equity financial

"for a private investment in public equity ("PIPE") resulting in $7 million"

Private investment in public equity occurs when investors buy shares directly from a company that is publicly traded, often at an early stage or at a discount, instead of purchasing them on the open market. This allows investors to acquire a stake more quickly and with potentially better terms, which can influence the company's future growth and stability—making it an important option for those seeking to support or benefit from a company's development.

pre-petition liabilities financial

"The Settlement resolves approximately $61 million of the Company's pre-petition liabilities."

Obligations, debts, or claims that a company incurred before it filed a formal bankruptcy or insolvency petition. Think of them as bills that existed before someone declared they could no longer pay: in a bankruptcy process those pre-petition liabilities are gathered, sorted by legal priority, and treated differently from obligations arising after the filing. Investors care because these older claims affect who gets paid first, how much creditors and equity holders may recover, and what value remains in any restructuring or sale.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

TEL AVIV, Israel, Oct. 16, 2026 (GLOBE NEWSWIRE) -- Gauzy Ltd. (Nasdaq: GAUZ) ("Gauzy" or the "Company"), a global leader in light and vision control technology, today announced that it has entered into a securities purchase agreement (the "Purchase Agreement") with a group of accredited investors led by Eyal Peso, the Company's Chief Executive Officer (collectively, the “Purchasers”), for a private investment in public equity ("PIPE") resulting in $7 million in aggregate gross proceeds (the "Offering"). Pursuant to the Purchase Agreement, the Company agreed to issue and sell 2,383,279 ordinary shares, no par value (“Ordinary Shares”), to the Purchasers at a purchase price of $2.9371 per share. In addition, in accordance with the terms of the Company’s court-approved debt settlement (the “Settlement”), 953,311 Ordinary Shares will be issued to the trustees appointed under the Settlement, Adv. Ehud Gindes and Adv. (CPA) Simion Keidar (the “Settlement Trustees”).

The Offering is intended to ensure that the Settlement is financed from day one. As previously announced, the Tel Aviv-Jaffa District Court granted final approval of the Settlement, effective September 8, 2026, under Israel's Insolvency and Economic Rehabilitation Law, 5778-2018, in Insolvency Proceeding No. 51175-03-26. The Settlement resolves approximately $61 million of the Company's pre-petition liabilities.

“This investment reflects my personal conviction, and that of our management team, in Gauzy’s technology, our customers and our long-term growth strategy,” said Eyal Peso, Chief Executive Officer of Gauzy. “With the court-approved Settlement now fully financed from day one, we have resolved our legacy liabilities and can turn our full attention to executing on our backlog across the Architecture, Automotive, Aviation and Rail markets and delivering value for our customers, employees and shareholders.”

The Offering closed on October 15, 2026. Of the gross proceeds, $1,638,000 will be held by the Settlement Trustees and refunded to the applicable Purchasers, and the corresponding Ordinary Shares will be cancelled, if the Lyon Commercial Court does not approve the French continuation plan for the Company’s subsidiary, Safety Tech SAS, on or before November 13, 2026.

About Gauzy

Gauzy Ltd. is a fully integrated light and vision control technology company specializing in the research, development, manufacturing, and marketing of innovative solutions that enhance safety, sustainability, comfort, and user experiences across multiple industries. Headquartered in Tel Aviv, Israel, Gauzy operates through subsidiaries and entities in Germany, France, the United States, Canada, China, Singapore, and the United Arab Emirates. The company serves leading brands in the aeronautics, automotive, and architecture sectors across more than 60 countries through direct fulfillment and a global network of certified distribution partners. Gauzy’s ordinary shares trade on the Nasdaq Stock Market under the ticker symbol GAUZ. For more information, visit www.gauzy.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Forward-looking statements include, without limitation, statements regarding the use of proceeds from the Offering, including any refund of proceeds and cancellation of Ordinary Shares in connection with the French continuation plan for Safety Tech SAS; the anticipated effects, benefits and long-term impact of the Settlement; the Company's liquidity, ability to continue as a going concern, and future business, financial condition and results of operations; and the Company's strategic priorities and growth plans. These statements are often identified by words such as "may," "will," "expect," "anticipate," "believe," "estimate," "intend," "plan," "continue," "project," "target," "outlook" and similar expressions, or their negatives, though not all forward-looking statements contain these words. Such statements are based on management's current expectations and beliefs and are subject to significant risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied, including, among others: the risk that the Lyon Commercial Court does not approve the French continuation plan for Safety Tech SAS; the Company's ability to satisfy its payment and other obligations under the Settlement; the Company's ability to maintain compliance with Nasdaq continued listing requirements; the Company's ability to continue as a going concern; the Company's ability to execute on its business strategy and convert backlog into revenue; competitive, technological and market developments affecting the smart glass, architecture, automotive, aviation and rail industries; general economic, financial and geopolitical conditions in Israel and the other jurisdictions in which the Company operates; and other risks and uncertainties described in the Company's Annual Report on Form 20-F and in its other filings and furnishings with the SEC, including its reports on Form 6-K. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Contacts

Investor & Media Contact:
Amanda Yevdaev, EVP Marketing
Gauzy Ltd.
PR@gauzy.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Gauzy raise in its private placement, and at what share price?

Gauzy raised $7 million in aggregate gross proceeds through a private placement of 2,383,279 ordinary shares at $2.9371 per share. The offering closed on October 15, 2026, with accredited investors led by Chief Executive Officer Eyal Peso.

What happens to Gauzy's placement proceeds if the French continuation plan is not approved?

If the Lyon Commercial Court does not approve Safety Tech SAS's French continuation plan on or before November 13, 2026, the settlement trustees will refund $1,638,000 to the applicable purchasers, and the corresponding ordinary shares will be cancelled.