Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 63

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 5
Chunk 63
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 offering in June 2024.

Upon the consummation of
our initial public offering, the remaining balance of the 2020 Convertible Loan Agreements (including the accrued interest) converted
into 322,476 ordinary shares based upon the initial public offering price of $17.00 and we issued an additional 8,087 ordinary shares
following the cashless exercise of warrants to purchase series C preferred shares.

In March 2023, we
entered into an additional convertible loan agreement, or the 2023 Convertible Loan Agreement, with several lenders pursuant to
which the lenders loaned us a sum of $38.9 million. The 2023 Convertible Loan Agreement was issued with warrants to purchase
shares of the most senior class of our shares existing immediately prior to the exercise of such warrant and bear 12% annual
interest, which shall be due and payable upon repayment or upon the conversion of the lender’s loan amount into a number of
shares, or the 2023 CLA Shares, upon the occurrence of the following events: (i) an IPO (as defined in the 2023 Convertible Loan
Agreement), (ii) a Deemed Liquidation (as defined in the 2023 Convertible Loan Agreement), (iii) a Qualified Financing (as defined
in the 2023 Convertible Loan Agreement), (iv) an optional conversion, including in the event of a repayment of the loan amount, at
the lender’s election or (v) at the lender’s election if not earlier converted prior to the third anniversary of
the disbursement date of the loan proceeds with respect to such lender. The 2023 CLA Shares shall be a newly created series of our
preferred equity having such rights and privileges as our then most recently authorized series of preferred equity with the
additional rights as set forth in the 2023 Convertible Loan Agreement. As of December 31, 2024, warrants to purchase 1,863,029
ordinary shares that were issued in connection with the 2023 Convertible Loan Agreement were outstanding.

In July 2023, we entered
into a further amendment to the outstanding 2020 Convertible Loan Agreements and the accompanying warrants, which we refer to as the
CLA Amendment, such that: (i) as of August 1, 2023, the interest was amended to reflect a net interest rate of 12% per annum, compounded
on a yearly basis, with the total interest not being less