NEW YORK - ZOOZ Power Ltd., an Israeli company specializing in flywheel-based power solutions for electric vehicle (EV) charging infrastructure, and Keyarch Acquisition Corporation announced the completion of their business combination. With this merger finalized, ZOOZ Power will be dual-listed, trading on both the Nasdaq and the Tel-Aviv Stock Exchange starting April 5, 2024.
The company's ordinary shares and public warrants will trade on Nasdaq under the ticker symbols "ZOOZ" and "ZOOZW," respectively. This move follows shareholder approval from both Keyarch and ZOOZ, with meetings held on March 27, 2024, and March 21 and 27, 2024, for ZOOZ shareholders.
Avi Cohen, Executive Chairman of ZOOZ, and CEO Boaz Weizer will continue to lead the company post-merger. Fang Zheng, Chairman of Keyarch, will join the combined company's board of directors. The business combination includes a $13 million private investment in public equity (PIPE) from accredited investors, which was completed alongside the merger.
Cohen expressed optimism about the merger, highlighting its importance for ZOOZ's growth and its positioning in the ultra-fast EV charging market. Zheng also conveyed enthusiasm for the company's future growth in the EV charging industry.
ZOOZ Power has developed proprietary flywheel technology for energy storage, which addresses the limitations of the existing electricity grid and supports the deployment of EV ultra-fast charging infrastructure.
The company's technology offers a sustainable and economical solution compared to traditional chemical battery-based systems, boasting a longer lifecycle with hundreds of thousands of charge-discharge cycles.
The legal and financial advisors for both companies were disclosed, with various firms supporting the merger process. Additional details regarding the business combination will be included in a Form 8-K report to be filed by Keyarch with the Securities and Exchange Commission.
This announcement is based on a press release statement and reflects the latest milestone in ZOOZ Power's efforts to enhance the EV charging infrastructure and support the wider adoption of electric vehicles globally.
InvestingPro Insights
As ZOOZ Power Ltd. embarks on a new chapter following its merger and dual-listing on the Nasdaq and Tel-Aviv Stock Exchange, investors may want to consider several key financial metrics and InvestingPro Tips. ZOOZ's market capitalization currently stands at $54.58 million, reflecting the market's valuation of the company post-merger.
Despite recent market volatility, the company maintains a P/E ratio of 26.6 based on the last twelve months as of Q3 2023, which suggests investors are expecting future earnings growth.
InvestingPro Tips indicate that ZOOZ stock has experienced significant price volatility and has seen a notable decline over the past week, month, and three months. This could be attributed to broader market trends or sector-specific challenges. The company's stock price has also been affected, currently trading at 52% of its 52-week high.
With a current price of $9.1 and an InvestingPro Fair Value estimate of $4.82, investors should be aware of the potential discrepancy between market prices and fundamental value assessments.
Moreover, ZOOZ Power has been profitable over the last twelve months, which is a positive sign for the company's financial health. However, it's worth noting that ZOOZ does not pay a dividend, which could be a consideration for income-focused investors.
For those interested in a deeper dive into ZOOZ's financials and to access additional insights, InvestingPro offers a total of 7 additional InvestingPro Tips for ZOOZ Power Ltd. at https://www.investing.com/pro/ZOOZ. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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