REE Automotive Announces Increase in Previously Announced Registered Direct Offering to $36.4 Million with Pricing of Additional $9.4 Million at Premium to Market, Led by Strategic Investor Motherson Group
REE Automotive (Nasdaq: REE) has expanded its previously announced registered direct offering to $36.4 million, with an additional $9.4 million priced at $4.25 per share. The offering is led by strategic investors Motherson Group and M&G Investments, who maintained their ownership stakes.
The company will issue a total of 8,595,807 ordinary shares across both offerings. The additional funding strengthens REE's cash position as it prepares for vehicle deliveries against nearly $1 billion in reservations. The company recently announced a memorandum of understanding (MOU) that could generate up to $770 million in potential revenue through collaboration with a global technology company for software-defined vehicle technology integration.
The offering is expected to close around March 27, 2025, with A.G.P./Alliance Global Partners acting as the sole placement agent. The proceeds will be used for working capital and general corporate purposes.
REE Automotive (Nasdaq: REE) ha ampliato la sua offerta diretta registrata precedentemente annunciata a 36,4 milioni di dollari, con un ulteriore importo di 9,4 milioni di dollari fissato a 4,25 dollari per azione. L'offerta è guidata da investitori strategici come Motherson Group e M&G Investments, che hanno mantenuto le loro partecipazioni.
L'azienda emetterà un totale di 8.595.807 azioni ordinarie in entrambe le offerte. Il finanziamento aggiuntivo rafforza la posizione di liquidità di REE mentre si prepara per le consegne dei veicoli contro quasi 1 miliardo di dollari in prenotazioni. L'azienda ha recentemente annunciato un memorandum d'intesa (MOU) che potrebbe generare fino a 770 milioni di dollari di potenziali ricavi attraverso una collaborazione con una società tecnologica globale per l'integrazione della tecnologia dei veicoli definiti dal software.
Si prevede che l'offerta si chiuda intorno al 27 marzo 2025, con A.G.P./Alliance Global Partners che agirà come unico agente di collocamento. I proventi saranno utilizzati per il capitale circolante e scopi aziendali generali.
REE Automotive (Nasdaq: REE) ha ampliado su oferta directa registrada previamente anunciada a 36.4 millones de dólares, con un monto adicional de 9.4 millones de dólares a un precio de 4.25 dólares por acción. La oferta está liderada por inversores estratégicos como Motherson Group y M&G Investments, quienes han mantenido sus participaciones.
La compañía emitirá un total de 8,595,807 acciones ordinarias en ambas ofertas. La financiación adicional fortalece la posición de efectivo de REE mientras se prepara para las entregas de vehículos contra casi 1 mil millones de dólares en reservas. Recientemente, la compañía anunció un memorando de entendimiento (MOU) que podría generar hasta 770 millones de dólares en ingresos potenciales a través de la colaboración con una empresa tecnológica global para la integración de tecnología de vehículos definidos por software.
Se espera que la oferta se cierre alrededor del 27 de marzo de 2025, con A.G.P./Alliance Global Partners actuando como el único agente de colocación. Los ingresos se utilizarán para capital de trabajo y fines corporativos generales.
REE Automotive (Nasdaq: REE)는 이전에 발표된 등록 직접 공모를 3,640만 달러로 확대하고, 추가로 주당 4.25달러에 940만 달러를 가격을 책정했습니다. 이 공모는 Motherson Group과 M&G Investments와 같은 전략적 투자자들이 주도하며, 이들은 자신들의 지분을 유지하고 있습니다.
회사는 두 가지 공모를 통해 총 8,595,807주의 보통주를 발행할 예정입니다. 추가 자금 조달은 REE가 거의 10억 달러의 예약금에 대한 차량 인도를 준비하면서 현금 위치를 강화합니다. 회사는 최근 소프트웨어 정의 차량 기술 통합을 위한 글로벌 기술 회사와의 협력을 통해 최대 7억 7천만 달러의 잠재적 수익을 창출할 수 있는 양해각서(MOU)를 발표했습니다.
이 공모는 2025년 3월 27일경에 마감될 것으로 예상되며, A.G.P./Alliance Global Partners가 단독 배치 대리인으로 활동합니다. 수익금은 운영 자본 및 일반 기업 목적에 사용될 예정입니다.
REE Automotive (Nasdaq: REE) a élargi son offre directe enregistrée précédemment annoncée à 36,4 millions de dollars, avec un montant supplémentaire de 9,4 millions de dollars fixé à 4,25 dollars par action. L'offre est dirigée par des investisseurs stratégiques tels que Motherson Group et M&G Investments, qui ont maintenu leurs participations.
La société émettra un total de 8 595 807 actions ordinaires dans les deux offres. Le financement supplémentaire renforce la position de liquidité de REE alors qu'elle se prépare à la livraison de véhicules contre près de 1 milliard de dollars en réservations. La société a récemment annoncé un protocole d'accord (MOU) qui pourrait générer jusqu'à 770 millions de dollars de revenus potentiels grâce à une collaboration avec une entreprise technologique mondiale pour l'intégration de la technologie des véhicules définis par logiciel.
L'offre devrait se clôturer autour du 27 mars 2025, avec A.G.P./Alliance Global Partners agissant en tant qu'agent de placement unique. Les produits seront utilisés pour le fonds de roulement et des fins corporatives générales.
REE Automotive (Nasdaq: REE) hat sein zuvor angekündigtes registriertes Direktangebot auf 36,4 Millionen Dollar ausgeweitet, mit zusätzlichen 9,4 Millionen Dollar zu einem Preis von 4,25 Dollar pro Aktie. Das Angebot wird von strategischen Investoren wie Motherson Group und M&G Investments geleitet, die ihre Beteiligungen beibehalten haben.
Das Unternehmen wird insgesamt 8.595.807 Stammaktien in beiden Angeboten ausgeben. Die zusätzliche Finanzierung stärkt die Liquiditätsposition von REE, während es sich auf die Fahrzeugauslieferungen gegen fast 1 Milliarde Dollar an Reservierungen vorbereitet. Das Unternehmen hat kürzlich ein Memorandum of Understanding (MOU) angekündigt, das durch die Zusammenarbeit mit einem globalen Technologieunternehmen zur Integration von softwaredefinierter Fahrzeugtechnologie potenzielle Einnahmen von bis zu 770 Millionen Dollar generieren könnte.
Das Angebot wird voraussichtlich um den 27. März 2025 abgeschlossen sein, wobei A.G.P./Alliance Global Partners als alleiniger Platzierungsagent fungiert. Die Erlöse werden für Betriebskapital und allgemeine Unternehmenszwecke verwendet.
- Secured additional $9.4 million funding at $4.25 per share, above market price
- Strong backing from strategic investors Motherson Group and M&G Investments
- Nearly $1 billion in vehicle delivery reservations
- New MOU with potential revenue of $770 million
- Strengthened cash position for production ramp-up
- Market volatility and sector anxiety affecting fundraising conditions
- Additional share issuance may lead to dilution for existing shareholders
Insights
REE Automotive's expanded $36.4M capital raise represents a significant financial development, securing funds equivalent to approximately 37% of its current market cap. The $4.25 per share pricing - a
The participation of strategic investor Motherson Group (a major automotive supplier) and M&G Investments (who previously invested in September 2024) provides validation beyond the capital itself. These aren't merely financial investors but strategic partners with industry expertise and long-term perspective.
This capital infusion substantially strengthens REE's runway toward commercializing its reservations, reportedly valued at nearly
While the offering creates dilution through 8.59 million additional shares, the premium pricing and strategic investor participation mitigate concerns. The capital provides essential working capital as REE transitions from development to production - a capital-intensive phase where many EV startups have faltered.
The continued investment by Motherson Group in REE represents a crucial strategic alignment beyond mere capital. As one of the world's leading automotive suppliers with deep industry connections, Motherson's increased stake signals confidence in REE's technology viability and market potential.
REE's software-defined vehicle (SDV) platform approach is particularly noteworthy amid the auto industry's transition toward more modular, software-centric architectures. The recent MOU with a global technology company validates REE's position at the intersection of automotive and technology sectors - exactly where industry transformation is occurring.
The company's mention of applications "outside of REE across different geographies" suggests their technology has potential for integration into various OEM platforms beyond their own vehicles. This platform licensing approach could enable faster scaling with reduced capital requirements compared to traditional automaker models.
REE's focus on "ramping to mass production" addresses the critical challenge facing all EV startups - the leap from prototype to scaled manufacturing. The strategic relationship with Motherson likely provides valuable supply chain access and manufacturing expertise to navigate this difficult transition, potentially reducing execution risk in ways that pure financial investment cannot.
- Motherson Group and M&G Investment led the round and held their ownership stake in the company
- Pricing is in addition to the previously announced
$27 million offering - New capital further strengthens REE’s cash position ahead of planned vehicle deliveries for nearly
$1 billion in reservations
TEL AVIV, Israel, March 26, 2025 (GLOBE NEWSWIRE) -- REE Automotive Ltd. (Nasdaq: REE) (“REE” or the “Company”), an automotive technology company that develops and builds software-defined electric vehicles, today announced that it has entered into securities purchase agreements with certain existing strategic investors, including M&G Investments and Motherson Group, for the purchase and sale of 2,219,176 ordinary shares at a purchase price of
The complete registered direct offering, including the proceeds from the offering announced on March 18, 2025, totals
The Company intends to use the net proceeds from the offering for working capital and general corporate purposes.
A.G.P./Alliance Global Partners is acting as the sole placement agent for the offering.
CEO Commentary
Despite recent market volatility and sector anxiety, which we believe has negatively impacting fund raising conditions, we believe the successful closure of this straight equity registered direct offering provides us with additional capital to build further upon our strong business momentum.
We believe that our recently announced memorandum of understanding (MOU) represents a significant commercial development and highlights the scale of opportunity open to REE. This MOU aims to generate up to
Besides ongoing commercial traction, REE remains intensely focused on ramping to mass production. We believe that the continued support from our largest shareholders, Motherson Group, and our long-term investor, M&G Investments, who also led our previous investment in September 2024, reinforces their commitment to our future growth.
This offering is being made pursuant to an effective shelf registration statement on Form F-3 (File No. 333-266902) which was declared effective by the Securities and Exchange Commission (the “SEC”) on August 25, 2022. The offering is made only by means of a prospectus which is part of the effective registration statement. A final prospectus supplement and the accompanying prospectus relating to the registered direct offering will be filed with the SEC and will be available on the SEC's website located at http://www.sec.gov. Additionally, when available, electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, from A.G.P./Alliance Global Partners, 590 Madison Avenue, 28th Floor, New York, NY 10022, or by telephone at (212) 624-2060, or by email at prospectus@allianceg.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About REE Automotive
REE Automotive Ltd. (Nasdaq: REE) is a technology company enabling the next generation of software-defined vehicles (SDVs). Powered by REE® vehicles manage operations and features through proprietary software, enhancing safety, modularity and performance in passenger and commercial vehicles. At the core of REE’s SDV technology is a single unified layer powered by the company’s system-on-chip, redundant architecture capable of real-time, complex decision making on vehicle dynamics, energy management and autonomy. REE has a global supply chain managed by multibillion dollar international supplier, Motherson Group, REE’s second largest investor. Together with a leading automotive manufacturer in Detroit, REE can produce Powered by REE vehicles at scale without the need for capital-intensive investment. REE’s SDV technology licensing is a solution for OEMs seeking to improve their cost structure, reduce time to market and enhance their product offering. The company is targeting the first deliveries of its flagship P7-C electric truck in the first half of 2025, and plans for continued growth by completing, not competing with global OEM’s future vehicle lineups. With a validated and certified SDV architecture, REE helps automakers and fleet operators unlock new mobility possibilities. Learn more at www.ree.auto.
Contacts
Media Contact
Malory Van Guilder
Skyya PR for REE Automotive
+1 651-335-0585
ree@skyya.com
Investor Contact
Dana Rubinstein
Chief Strategy Officer for REE Automotive
investors@ree.auto
Forward Looking Statements
This communication includes certain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, statements regarding REE or its management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. For example, REE is using forward-looking statements when it discusses the expected closing of the offering and the expected use of proceeds, its belief that the offering provides it with additional capital to build further upon it strong business momentum, the belief that the continued support from its largest shareholders reinforces their commitment to REE’s future growth, the potential benefits of the recently announced MOU and the potential revenues that may be realized pursuant to the MOU, the belief that the MOU is just the start of its advanced SDV technology reshaping electric and autonomous transportation at scale through integration into multiple vehicle segments and applications outside of REE across different geographies. In addition, any statements that refer to plans, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “aim” “anticipate,” “appear,” “approximate,” “believe,” “continue,” “could,” “can,” “estimate,” “expect,” “foresee,” “intend(s),” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “would”, “designed,” “target” and similar expressions (or the negative version of such words or expressions) may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. All statements, other than statements of historical facts, may be forward-looking statements.
These forward-looking statements are based on REE’s current expectations and assumptions about future events and are based on currently available information as of the date of this communication and current expectations, forecasts, and assumptions. Although REE believes that the expectations reflected in forward-looking statements are reasonable, such statements involve an unknown number of risks, uncertainties, judgments, and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. These factors are difficult to predict accurately and may be beyond REE’s control. Forward-looking statements in this communication speak only as of the date made and REE undertakes no obligation to update its forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this communication may not occur.
Uncertainties and risk factors that could affect REE’s future performance and could cause actual results to differ include, but are not limited to: REE’s ability to commercialize its strategic plan, including its plan to successfully evaluate, obtain regulatory approval, produce and market its P7 lineup; REE’s ability to maintain and advance relationships with current Tier 1 suppliers and strategic partners; development of REE’s advanced prototypes into marketable products; REE’s ability to grow and scale manufacturing capacity through relationships with Tier 1 suppliers; REE’s estimates of unit sales, expenses and profitability and underlying assumptions; REE’s reliance on its UK Engineering Center of Excellence for the design, validation, verification, testing and homologation of its products; REE’s limited operating history; risks associated with building out of REE’s supply chain; risks associated with plans for REE’s initial commercial production; REE’s dependence on suppliers and potential suppliers, which include single or limited source suppliers; development of the market for commercial EVs; risks associated with data security breach, failure of information security systems and privacy concerns; risks related to a lack of compliance with Nasdaq’s minimum bid price requirement or other Nasdaq listing rules; future sales of our securities by existing material shareholders or by us that could cause the market price for the Class A Ordinary Shares to decline; potential disruption of shipping routes due to accidents, political events, international hostilities and instability, piracy or acts by terrorists; intense competition in the e-mobility space, including with competitors who have significantly more resources; risks related to the fact that REE is incorporated in Israel and governed by Israeli law; REE’s ability to make continued investments in its platform; the impact of fluctuations in interest rates, inflation, and foreign exchange rates; the ongoing conflict between Ukraine and Russia and any other worldwide health epidemics or outbreaks that may arise and adverse global conditions, including macroeconomic and geopolitical uncertainty; the global economic environment, the general market, political and economic conditions in the countries in which we operate (including the recent policy changes by the Trump Administration); the ongoing Gaza war and other military conflict in Israel; the need to attract, train and retain highly-skilled technical workforce; changes in laws and regulations that impact REE; REE’s ability to enforce, protect and maintain intellectual property rights; REE’s ability to retain engineers and other highly qualified employees to further its goals; and other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in REE’s annual report filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 27, 2024 and in subsequent filings with the SEC.
FAQ
What is the total value of REE Automotive's expanded registered direct offering in March 2025?
How many shares will REE Automotive issue in this offering?
What is the potential revenue from REE's recent memorandum of understanding (MOU)?
Who are the main strategic investors in REE's March 2025 offering?
When is REE's offering expected to close?
