Zooz Power announced on Monday that it is planning to start trading on Nasdaq through a merger with a special purpose acquisition company (SPAC), in a transaction that values the Israel-based developer of ultra-fast power boosters for electric vehicles (EVs) at $100 million.
The Tel Aviv-based startup said it entered into a business combination agreement to merge with Keyarch Acquisition Corp, a publicly traded SPAC. Upon closure of the transaction, which is expected in the fourth quarter of 2023, Zooz will be publicly listed to trade on the Nasdaq exchange under the symbol “ZOOZ,” the two companies said in a joint statement.
Zooz, which will continue to trade on the Tel Aviv Stock Exchange, said that the agreed transaction value of the firm of $100 million, includes $60 million at the closing of the merger and up to $40 million of additional contingent consideration via the issuance of shares. The startup’s Tel Aviv-traded shares jumped more than 19 percent on Monday, giving the firm a market cap of about $20 million.
The startup’s kinetic power booster (KPB), based on patented flywheel technology, converts electrical energy into kinetic energy and is designed for areas where EV infrastructure is still behind or where the electricity grid is not yet sufficiently powerful to give a quick boost.
The boosters, which the company says can fully recharge batteries within 15 minutes, are modular, take up about half a parking space, and can be installed in key areas such as parking lots, airports, and hotels.
By using physics rather than chemistry, the kinetic recharger avoids environmental issues and costs such as massive water use and pollution associated with lithium extraction. Lithium, a mineral, is used for lithium-ion batteries, the most common storage vessel today.
In December, Zooz signed a five-year distribution agreement with Nasdaq-listed Blink Charging, a US operator of EV charging equipment, to help further establish its footprint in the American market. As part of the deal, Blink Charging will serve as Zooz’s distributor for the sale and deployment of its fast EV power system.
“As we further develop our world-wide installed base and with the initiation of our US presence, we believe expanding from being traded on the TASE to being traded on Nasdaq as well, will provide us with enhanced geographic exposure and simpler access to working capital,” stated Zooz chairman Avi Cohen.
The transaction is expected to generate a minimum of $10 million in net proceeds from cash held in Keyarch’s trust account or other sources.
Following the closure of the merger, current Zooz shareholders will own between 40% to 50% of the startup’s issued share capital. In addition, Zooz shareholders will be issued so-called earnout rights convertible into up to 4,000,000 ordinary shares as an additional contingent consideration, subject to the startup achieving certain milestones based on gross revenues or share price.
“These are exciting times for Zooz, as we move forward with the introduction and deployment of our new innovative product – the ZOOZTER™-100 Power Booster – and doing so in perfect timing, aligned with significant acceleration and growth of the EV ultra-fast charging infrastructure market,” said Zooz CEO Boaz Weizer. “In view of these developments, we believe it is the right time for us to join forces with Keyarch and list on Nasdaq. We see that as a significant milestone in Zooz’s journey to become a leading company in this rapidly evolving and exciting market of EV charging infrastructure.”
Zooz has its ZOOZTER™-100 units installed at a number of commercial and leisure locations in parts of Germany and Austria, as well as at a pilot project in New York.
In November last year, Zooz teamed up with an unnamed global car rental services giant to jointly operate a pilot for EV ultra-fast charging infrastructure at New York City’s LaGuardia Airport. In September, the Lod-based company won a New York-Israel Smart Energy Innovation Challenge worth $1 million. The award means that the state can partner with Zooz to advance New York’s clean energy goals.