ZOOZ Power Shares Plunge Amid $185 Million Capital Raise Plans

Introduction

ZOOZ Power Ltd (NASDAQ: ZOOZ), headquartered in St. Lod, Israel, develops kinetic energy storage systems for electric vehicle (EV) charging. Its primary product, the ZOOZTER™-100, utilizes proprietary flywheel technology to draw grid power when available and release energy as needed. The system supports high-power charge/discharge cycles over a 15-year lifespan without degradation and does not use rare-earth materials or toxic chemicals.

Corporate Structure

Founded in 2013 by Ilan Ben David, David Pincu, and Nir Zohar, ZOOZ Power employs between 11 and 50 staff under CEO Erez Zimerman. The company is dual-listed on the Nasdaq Capital Market (ticker ZOOZ) and the Tel Aviv Stock Exchange (ticker ZOOZW for warrants). Its customer base includes charge point operators, fleet managers, and EPC firms aiming to deploy ultra-fast charging infrastructure without incurring substantial grid upgrade costs.

Flywheel technology by Toby Hall

Recent Developments and News

• April 5, 2024: ZOOZ completed a business combination with Keyarch Acquisition Corporation, initiating dual listings on Nasdaq and TASE.
• July 29, 2025: The company filed two Form 6-K reports with the U.S. Securities and Exchange Commission:
  • A sales agreement with Chardan Capital Markets LLC for an “at-the-market” offering of up to $10.95 million in ordinary shares, with a 3.0% agent commission.
  • Securities purchase agreements for private placements expected to raise approximately $185 million in gross proceeds, comprising:
  – An initial tranche of 1,000,000 shares at $2.00 each and up to 1,500,000 pre-funded warrants at $1.999 each.
  – A subsequent tranche of 170,485,350 shares at $1.00 each and up to 5,000,000 pre-funded warrants, subject to shareholder approval.
  On July 29, 2025, ZOOZ shares closed at $2.50, down 28.77% on a trading volume of 3,912,570 shares.

Financial and Strategic Analysis

In a July 29 prospectus supplement, ZOOZ reported a non-affiliate market capitalization of $32.87 million based on a $3.66 per-share price on July 25. The share price decline to $2.50 represents a decrease in implied valuation. The at-the-market offering and private placements represent a capital-raising strategy. Proceeds from the sales agreement provide ongoing market flexibility, while the private placements will support debt reduction and potentially fund strategic initiatives. The use of a shelf registration statement allows for incremental equity issuances as market conditions permit.

Market Position and Industry Context

ZOOZ Power addresses a limitation in the EV charging sector: grid capacity constraints at ultra-fast charging locations. Its flywheel-based boosters stabilize power draw, reduce peak grid loads, and present a lower total cost of ownership compared to chemical-battery solutions. The technology avoids the use of rare-earth materials and toxic chemicals, aligning with the UN’s Sustainable Development Goals. ZOOZ’s solutions are deployed across Europe and the United States, assisting operators in expanding ultra-fast charging networks without awaiting grid improvements.

TL;DR

On July 29, 2025, ZOOZ Power’s shares fell 28.77% to $2.50 on Nasdaq, with nearly 3.9 million shares traded. The company filed SEC Form 6-K reports detailing a $10.95 million at-the-market offering and private placements aimed at raising $185 million in gross proceeds. Proceeds are intended for debt reduction and may support a reserve initiative, positioning ZOOZ to advance its flywheel-based EV charging solutions under existing market constraints.