The share price of Gauzy (Nasdaq: GAUZ) fell by 5.2% over the final two trading days of the week, though it closed above the all-time low it had reached earlier last week. The company, which has developed technology to control light transmission through transparent surfaces ("smart glass"), is currently traded on Nasdaq at the negligible valuation of just $5 million. Gauzy went public less than two and a half years ago with a valuation of $319 million, and has since lost 98% of its value.
The company encountered financial difficulties and reached a debt arrangement that has been approved by the Tel Aviv District Court. Last week, the company announced a $7 million private placement, which forms part of the proposed debt arrangement. Investors, led by co-founder and CEO Eyal Peso, will inject $7 million into the company at $2.94 per share, which is lower than the current market price of $4.40. Additionally, approximately 953,000 shares will be allocated to trustees appointed under the arrangement: Adv. Ehud Gindes and Adv. Simion Keidar. These shares will be cancelled, and the funds returned, should the Commercial Court in Lyon, France, fail to approve a plan for Gauzy’s subsidiary.
Upon completion of the offering, the investors led by Peso will hold 50% of the equity (on a fully diluted basis), the trustees will hold 20%, and the remaining shareholders will hold 30%. According to the company, the approved arrangement addresses liabilities totaling approximately $61 million.
Peso stated that the investment reflected his own confidence and that of the management team inn Gauzy’s technology and its long-term growth strategy. "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," Peso said.
Published by Globes, Israel business news - en.globes.co.il - on October 18, 2026.
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