Keyarch Acquisition in an 8-K said it had secured agreements for $13 million in PIPE funding at $10 a share to support its proposed merger with ZOOZ Power. The SPAC announced last week it was in negotiations to raise up to $60 million in PIPE funds.
The target is a provider of flywheel-based power boosting solutions for the EV charging infrastructure market.
The parties also agreed to extend the termination date on the deal to April 1, when either side can walk away.
The deal was announced last July at an equity value of up to $100 million.
If approved, the deal is now expected to close in the first quarter — which is also a condition to the PIPE funding. There is a minimum $10 million cash consideration to close.
The equity value reflects $60 million at closing and up to $40 million of additional contingent consideration through earnout shares.
Israel-based ZOOZ (formerly known as Chakratec Ltd) was established in 2013. The company is focused on the development, manufacturing and marketing of innovative Power Boosters aimed to support ultra-fast charging of electrical vehicles.
Keyarch raised $115 million in a February 2022 IPO. Read more.
