Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 179

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 19
Chunk 179
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ing to $2.5million. On April 5, 2024, the Group received an additional amount of $1.9million under the 2024 NPA, net of withdraw
fees and reimbursed costs.

The principal amount of any Notes issued
to Purchaser under the 2024 NPA bear interest at a rate of14% per annum, payable by the issuer quarterly.

In addition, under the 2024 NPA and upon
closing of the IPO, the 2024 Note Purchasers exercised their commitment to purchase an additional882,353ordinary shares and137,040warrants to ordinary shares in an amount of $15.0million.

The 2024 Notes are due on November 8,
2028, provided that 2024 Notes may be subject to partial prepayment following the date the annual financial statements of the Company
are due to be delivered in accordance with the 2024 Note Purchase Agreement, in an amount equal to25% of the excess cash flow calculated
in accordance with the terms of the 2024 Note Purchase Agreement. Subject to certain conditions specified therein, the 2024 Notes may
be voluntarily prepaid at any time.

Under the 2024 NPA, the Company and its
subsidiaries are subject to various negative and affirmative covenants, which include, among others, the following: (i) limitations on
incurrence of additional financial indebtedness and on grant of liens (subject to certain permitted incurrence of indebtedness); (ii)
limitations on investments in, and formation or acquisition of, additional entities or joint ventures; (iii) limitations on the conduct
of any material activities other than those related to the development, manufacture and marketing of vision and light control technologies
or incidental thereto; (iv) the Company is required to maintain at all times a cash balance of at least $1.5million; and (v) additional
limitations on payments to shareholders of dividends or any indebtedness, and other imitations on change in control as specified in the
2024 NPA. In addition, the 2024 NPA contains events of default customary in such transactions, including non-payment; breach of covenants;
breach of representations; bankruptcy, insolvency proceedings and creditors’ process; occurrence of a material adverse event, in
each case may be subject to grace or cure periods prescribed by the 2024 NPA.

As of December 31, 2024, the Company
meets the conditions