ZOOZ Secures $5M in Initial Private Placement to Enhance Bitcoin Strategy
ZOOZ Completes Initial Private Placement Milestone
This signifies an important advancement for ZOOZ as it aims to be a dual-listed company embracing Bitcoin as a treasury asset.
ZOOZ Power Ltd. (NASDAQ: ZOOZ) has made headlines with the closure of its initial private placement transaction, amounting to $5 million. This achievement marks the first step in a larger $180 million private placement series. This initiative is designed for accredited institutional investors, showcasing ZOOZ’s proactive approach to enhancing its financial position and innovative strategies.
The proceeds from this initial placement will serve two main purposes: to help repay existing promissory notes and support general corporate objectives. Notably, ZOOZ plans to devote a significant portion—about 95%—of the proceeds towards launching its Bitcoin treasury strategy, which is intended to provide substantial long-term benefits to its shareholders.
Details of the Private Placement
The initial placement involved the issuance of roughly 2.5 million ordinary shares, sold at the price of $2.00 each, accompanied by pre-funded warrants. Along with these shares, investors are granted warrants allowing the purchase of two additional ordinary shares at an exercise price of $3.06 per share, enabling a flexible investment opportunity.
CEO's Vision for the Future
Jordan Fried, the Chief Executive Officer of ZOOZ, expressed exceptional optimism regarding this successful close of the Initial Private Placement. In his statement, he articulated, “This investment reflects substantial confidence from our investors in our forward-looking Bitcoin reserve strategy. With their backing, we are optimistic about pursuing a robust future that significantly enhances shareholder value.”
This initial financing is just the first step toward a broader $180 million private placement initiative, with hopes of other strategic enhancements following shareholder approval. ZOOZ’s commitment to developing a substantial Bitcoin reserve is part of its broader initiative to establish itself as a leading and innovative capital allocator within its sector.
Positioning as a Pioneer in the Market
As ZOOZ sets its sights on becoming the first dual-listed Nasdaq and TASE company to adopt a Bitcoin treasury strategy, the company is poised to take a groundbreaking position in the market. By integrating Bitcoin into its treasury, ZOOZ aims to create a pioneering model within the financial sector. This strategy is projected to generate direct exposure for shareholders, potentially resulting in long-term, asymmetric benefits.
Understanding the Potential Risks
While ZOOZ is enthusiastic about its Bitcoin treasury initiative, it acknowledges the inherent risks and uncertainties associated with new financial strategies. Factors such as macroeconomic fluctuations, regulatory changes, market volatility concerning cryptocurrency, and the evolving situations globally can impact the company's performance. ZOOZ is attentive to these risks, continuously evaluating its approach to ensure robust and sustainable growth.
About ZOOZ Power Ltd.
ZOOZ is on a journey to redefine the norms within its industry through innovative financial strategies. It is publicly traded under the ticker ZOOZ on both the Nasdaq and TASE exchanges. The company is focused on establishing a Bitcoin treasury that may potentially bolster its market position and shareholder returns significantly.
Investor Relations Contacts
ZOOZ encourages interested parties to reach out regarding inquiries or additional information. For investor relations, Miri Segal serves as the CEO of MS-IR LLC. She is available via email at msegal@ms-ir.com.
Frequently Asked Questions
What is the purpose of ZOOZ’s private placement?
The private placement is primarily aimed at raising capital to support ZOOZ’s Bitcoin treasury strategy and to pay off existing promissory notes.
How will the proceeds from the private placement be utilized?
Approximately 95% of the proceeds will be used to launch the Bitcoin treasury strategy, with some allocated for general corporate purposes.
What is the significance of ZOOZ’s BTC treasury strategy?
Establishing a Bitcoin treasury can position ZOOZ as a front-runner in the market, potentially benefiting shareholders through direct Bitcoin exposure.
Who is leading ZOOZ’s strategic vision?
Jordan Fried is the Chief Executive Officer driving the initiative, aiming to build long-term shareholder value and financial strength.
How can investors contact ZOOZ for more information?
Investors can contact Miri Segal, the CEO of MS-IR LLC, at msegal@ms-ir.com.
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