Settlement Provides for Elimination of Existing EIB Facility and Release of Related Security; Management Estimates Indicate Approximately 54% Reduction in Total Liabilities and 77% Increase in Shareholders' Equity

Agreement Concludes Financing Chapter That Helped Establish the World's First Heat Battery Gigafactory and Aligns Capital Structure with BrenX's Integrated Industrial Energy Strategy

Rosh HaAyin, Israel--(Newsfile Corp. - September 15, 2026) - BrenX Ltd. (NASDAQ:BRNX) (the "Company" or "BrenX"), a provider of thermal energy storage ("TES") and integrated industrial energy solutions, today announced that it has entered into a settlement agreement with the European Investment Bank ("EIB"). Under the settlement agreement, following BrenX's €1.1 million initial settlement payment and the EIB's confirmation that the closing conditions have been satisfied, the existing EIB finance contract and related equipment and receivables pledge agreement will be cancelled, the EIB's claims thereunder will be settled, any further amounts outstanding under the finance contract will be waived, and the related security will be released and terminated, in each case in accordance with the settlement agreement.

Key Highlights

  • Approximately $4.8 million of EIB debt expected to be eliminated: Following the initial €1.1 million settlement payment, the Company's March 2021 credit facility with the EIB and its scheduled principal and interest obligations will be cancelled, and the related security will be released, following the satisfaction of the other closing conditions and subject to the Company's obligations under the settlement agreement, including the potential €2.9 million contingent settlement payment described below.
  • Transformational balance sheet impact: Based on management's current estimates and assumptions, applying the settlement to the Company's June 30, 2026 balance sheet would reduce total liabilities from approximately $8.9 million to approximately $4.1 million, a reduction of approximately 54%, while increasing shareholders' equity from approximately $4.6 million to approximately $8.2 million, an increase of approximately 77%.
  • Potential income: Based on management's current estimates and assumptions, the settlement expected to result in income of approximately $3.6 million.
  • Greater financial flexibility: The settlement is expected to strengthen BrenX's financial position and provide greater flexibility to advance its integrated industrial energy strategy.
  • Capital structure expected to align with BrenX's evolving strategy: The settlement is expected to support the Company's evolution from a primarily TES equipment-focused model into an integrated industrial energy platform, with bGen™ remaining its core technology.

The settlement follows the waiver announced by the Company on July 24, 2026, under which the EIB deferred an approximately $1.7 million payment due on July 28, 2026, allowing the parties additional time to reach a comprehensive and constructive resolution.

The EIB has played an important role in enabling BrenX to establish what the Company believes is the world's first gigafactory dedicated to heat battery production. The facility created advanced industrial manufacturing capacity for bGen™ systems and helped move the Company's TES technology from development toward commercial-scale deployment. BrenX greatly values the EIB's longstanding support for industrial innovation and technologies designed to reduce emissions from industrial heat, as well as the constructive approach that enabled the parties to reach this settlement.

Since the original financing was established, the industrial heat market and the Company's commercial model have continued to evolve. BrenX is expanding from a model centered primarily on the manufacture and sale of thermal energy storage systems into an integrated industrial energy platform that can develop, own, operate and optimize electricity, heat, renewable generation, battery storage, thermal storage, and related energy assets around customer demand. This expanded approach is designed to deliver integrated energy solutions directly to industrial production floors and other energy-intensive sites. bGen™ TES remains the technological core of the platform and a key enabler of reliable, lower-emission industrial heat.

BrenX believes the settlement represents an important step in this strategic evolution, aligning financing arrangements established during the Company's earlier manufacturing-focused phase with a business model increasingly centered on integrated energy infrastructure and long-term energy solutions. Upon closing, by eliminating the scheduled principal and interest obligations under the March 2021 credit facility with the EIB and releasing the related security, the settlement is expected to provide greater near-term financial flexibility as BrenX advances its strategy.

Under the settlement agreement, if a transaction including certain change-of-control transactions and certain dispositions of businesses, subsidiary shares, assets or intellectual property (each a "Qualifying Transaction") is signed or occurs during the one-year period following the initial settlement payment by the Company of the €1.1 million, BrenX will be required to make an additional €2.9 million cash payment to the EIB.