Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 69

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 5
Chunk 69
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 D-6 Warrants are exercisable until
November 8, 2028. The D-5 Warrants and the D-6 Warrants are exercisable into ordinary shares (and the number of ordinary shares of the
Company into which the D-5 Warrants and D-6 Warrants are exercisable, respectively, is the number of ordinary shares into which such
Preferred D-5 shares and Preferred D-6 shares, respectively, would have converted had they been converted prior to our initial public
offering). The D-5 Warrants and the D-6 Warrants vest on a daily basis, such that each day from the date of their issuance the number
of shares that may be purchased thereunder equals the product of (i) the maximum number of shares exercisable under the applicable warrant
and (ii) a fraction, the numerator of which is the aggregate principal amount of the 2023 Notes issued to the 2023 Note Purchaser pursuant
to the Note Purchase Agreement, and the denominator of which is $60,000,000. The D-5 Warrants are exercisable at a price per share equal
to $15.61. The D-6 Warrants are exercisable at a price per share equal to the D-5 Exercise Price multiplied by 1.2, or $18.73.

Under the Note Purchase Agreement,
we and our subsidiaries are subject to various negative and affirmative covenants, which include, among others, the following: (i) limitations
on incurrence of additional financial indebtedness and granting of liens (subject to certain permitted incurrences 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 light and vision control
technologies or incidental thereto; (iv) we are required to maintain at all times a cash balance of at least $1.5 million; and (v) additional
limitations on payments to shareholders of dividends or any indebtedness, and other limitations on change in control as specified in
the Note Purchase Agreement. In addition, the Note Purchase Agreement contains events of default customary in such transactions, including
non-payment, breach of covenants, breach of representations, bankruptcy, insolvency proceedings and creditors’ process, or occurrence
of a material adverse event. In some events, default is subject to grace or cure periods prescribed by the