Gauzy Ltd. announced that creditors' meetings will convene on August 27, 2026, to vote on a proposed debt settlement under the Insolvency and Economic Rehabilitation Law, 5778-2018, aimed at avoiding insolvency proceedings. The meetings for preferential, secured, and general unsecured creditors are scheduled from 3:00 p.m. to 5:00 p.m. Israel time in Ramat Gan or via Zoom. A court hearing to consider approval of the settlement is set for September 6, 2026. Gauzy Ltd. operates in the smart glass and energy-efficient building materials industry.

Gauzy Ltd. has issued a notice for a Special General Meeting of Shareholders to be held on August 31, 2026. Shareholders will vote on a proposal authorizing the Board of Directors to implement one or more reverse share splits at an aggregate ratio between 1-for-2 and 1-for-1,000 at any time before December 31, 2027. The company seeks this authorization to regain compliance with Nasdaq's $1.00 minimum bid price requirement, which is a prerequisite for a $7,000,000 PIPE financing transaction and a proposed debt settlement. Gauzy is currently facing insolvency-related proceedings in France and Israel and has non-compliance issues regarding SEC periodic reporting. Gauzy Ltd. develops smart-glass and light- and vision-control technologies for the automotive, aeronautics, and architectural markets.

Gauzy Ltd. proposed a debt settlement in Israel to address insolvency proceedings initiated by former employees, aiming for 100% recovery for senior secured creditors through either an exit event exceeding US$330 million or 25% of annual net profits. In connection with the settlement, the company entered a binding term sheet for a US$7,000,000 PIPE financing led by CEO Eyal Peso and Chutzpah Holdings LP to fund creditor payments, working capital, and salary financing. Gauzy Ltd. develops light and vision control products for the aeronautics and automobile markets.