Business
REE Announces Closing of Public Offering of Ordinary Shares
- Raised $14.95 million in ordinary shares issued with minimal discount - Overallotment fully exercised - Multiple investors participated in the round, led by
About this update from Ree Automotive Ltd.
[{"type":"text","content":"- Raised $14.95 million in ordinary shares issued with minimal discount - Overallotment fully exercised - Multiple investors participated in the round, led by M&G, REE’s largest investor TEL AVIV, Israel, March 06, 2024 (GLOBE NEWSWIRE) -- REE Automotive Ltd. (Nasdaq: REE), an automotive technology company and provider of full by-wire electric trucks and platforms, today announced the closing of its previously announced underwritten public offering of 2,300,000 Class A ordinary shares (the “ordinary shares”), which includes the full exercise of the underwriter’s overallotment option. Each ordinary share was sold at a public offering price of $6.50 per share. The gross proceeds to REE from the offering are approximately $14.95 million, before deducting the placement agent’s fees and other offering expenses payable by REE. REE intends to use the net proceeds from the offering primarily for working capital and general corporate purposes, including continued product development and commercialization. Multiple investors participated in the offering, led by M&G Investment Management Limited (“M&G”), one of Europe’s largest investment firms and REE’s largest shareholder. Through its long history of investing in the global auto industry, M&G has a valuable network of industry connections which can offer significant value to REE. “REE remains financially and operationally disciplined. We are highly motivated by the confidence and continued support of our customers and our investors, including our largest shareholder, M&G. We continue to execute upon our business plans, as evidenced by the recent FMVSS certification milestone and continued growth in our order book. In a market with significant structural demand and limited supply options, we are seeing customer interest continuing to build,” said Daniel Barel, co-founder and CEO of REE Automotive. “We continue to be very impressed with REE’s execution and its technological achievements. Let’s not lose sight of the fact that REE’s x-by-wire technology, which sits at the heart of its offering, is unlike anything else commercially available today,” said Carl Vine, co-head of APAC Equity Investing at M&G. “REE’s business model has always been differentiated from other companies that we have seen come and go in this space. By only ever intending to supply the critical, technology-driven aspect...