Euronergy Tech raises ₪71 million at deep discount from stakeholders and officers

The renewable energy company will seek approval for a private placement including shares and options at an effective price reflecting a discount of up to 41% on the market price. Among the investors: major shareholders and senior management.

Euronergy Tech Ltd. is working to raise capital of approximately ₪71.35 million through a substantial and unusual private placement. The placement, which will be brought to the shareholders' meeting for approval on October 21, is designated for a group of investors including major shareholders and senior company executives, and will be carried out at an effective price reflecting a significant discount to the exchange share price. The funds are earmarked to finance the company's new strategic plan.

Renewable energy company Euronergy Tech is seeking to raise approximately ₪71.35 million from existing investors and executive officers, in a move that will significantly strengthen its cash reserves and provide the capital needed to implement its strategic plan. The company has convened a special general meeting for October 21, 2026, where it will be asked to approve a private placement of approximately 11.83 million shares and approximately 12.45 million non-marketable options.

### Significant discount to investors
According to the supplementary report published by the company, the placement will be executed in two tranches, following board approval at the beginning and end of September. The share price in the offering stands at ₪6.03, but the full picture is more complex. The placement also includes options exercisable into shares at a price of ₪8 per share until March 2029. The economic value of the options, as estimated using the Black-Scholes model, brings the effective price per share in the placement to a significantly lower level.

For the first part of the placement, approved on September 2, the effective price per share stands at ₪3.94, reflecting a discount of about 34% on the average closing price in the 30 days preceding the approval. In the second part, approved on September 22, the effective price drops to ₪3.83 per share – a discount of about 41% from the share price on the day prior to approval (₪6.53). The company stated that the transaction terms, including the discount, were determined after intensive negotiations and are "fair and reasonable" given market conditions and the company's need for certainty regarding financing.

### Vote of confidence from stakeholders
The list of investors (offerees) in the placement includes familiar names who currently collectively hold about 49.4% of the company's shares. Prominent participants include major shareholders Avraham Levi (participating in the amount of about ₪20 million), Yitzhak Hagag (about ₪15 million), Joseph Cit (about ₪10 million), and Yaron Yaacobi (about ₪7.2 million). In addition, senior officers are also taking part in the raise, including Yiftach Ron-Tal, Tal Raz, and Daniel Sarussi. The board of directors views this participation as "an expression of confidence in the company and the manner of implementation of the strategic plan."