REE Automotive Raises Capital Via Share and Warrant Offering
Ticker: REE · Form: 6-K · Filed: Sep 17, 2024 · CIK: 1843588
| Field | Detail |
|---|---|
| Company | Ree Automotive Ltd. (REE) |
| Form Type | 6-K |
| Filed Date | Sep 17, 2024 |
| Risk Level | medium |
| Pages | 3 |
| Reading Time | 4 min |
| Key Dollar Amounts | $4.122, $4.121, $0.001, $45.3 million, $30 million |
| Sentiment | neutral |
Sentiment: neutral
Topics: capital-raise, registered-direct-offering, shares, warrants
TL;DR
REE Auto just sold shares & warrants for $4.122/share on Sept 15th to raise cash.
AI Summary
On September 15, 2024, REE Automotive Ltd. entered into a securities purchase agreement with institutional and accredited investors. The agreement provides for the issuance of 7,362,930 Class A Ordinary Shares at $4.122 per share and 3,639,893 pre-funded warrants. This registered direct offering is expected to raise capital for the company.
Why It Matters
This capital raise provides REE Automotive with funds to continue its operations and development in the electric vehicle technology sector.
Risk Assessment
Risk Level: medium — The company is issuing new shares and warrants, which can dilute existing shareholders and indicates a need for capital, potentially signaling financial challenges.
Key Numbers
- $4.122 — Share Price (Price per ordinary share in the registered direct offering.)
- 7,362,930 — Ordinary Shares (Number of Class A Ordinary Shares issued in the offering.)
- 3,639,893 — Pre-funded Warrants (Number of pre-funded warrants issued in the offering.)
Key Players & Entities
- REE Automotive Ltd. (company) — Registrant
- September 15, 2024 (date) — Date of securities purchase agreement
- 7,362,930 (dollar_amount) — Number of Class A Ordinary Shares issued
- 3,639,893 (dollar_amount) — Number of pre-funded warrants issued
- $4.122 (dollar_amount) — Purchase price per ordinary share
FAQ
What is the total amount of capital REE Automotive Ltd. expects to raise from this offering?
The filing does not explicitly state the total expected capital raise, but it details the number of shares and warrants issued at a specific price per share.
Who are the investors participating in this registered direct offering?
The investors are described as 'certain institutional and accredited investors'.
What is the purpose of issuing pre-funded warrants?
Pre-funded warrants are typically issued in lieu of shares to investors who wish to purchase shares at a nominal exercise price, often to avoid exceeding certain ownership thresholds or for tax reasons. The filing states they are 'each to purchase one ordinary share'.
What is the exercise price for the pre-funded warrants?
The filing states the pre-funded warrants are 'each to purchase one ordinary share' but does not specify a nominal exercise price for the warrants themselves, only the purchase price of the ordinary shares.
When was the securities purchase agreement entered into?
The securities purchase agreement was entered into on September 15, 2024.
Filing Stats: 1,028 words · 4 min read · ~3 pages · Grade level 13.2 · Accepted 2024-09-17 17:26:07
Key Financial Figures
- $4.122 — shares”), at a purchase price of $4.122 per ordinary share, and (ii) 3,639,893
- $4.121 — ded Warrants will be sold at a price of $4.121 each, including the Pre-Funded Warrant
- $0.001 — he Pre-Funded Warrant exercise price of $0.001 per full share. The Pre-Funded Warrants
- $45.3 million — roceeds to the Company of approximately $45.3 million. The Company intends to use the net pro
- $30 million — therson has received an amount equal to $30 million in Quarterly Fees. In addition, the Agr
Filing Documents
- ea0214741-6k_reeauto.htm (6-K) — 22KB
- ea021474101ex4-1_reeauto.htm (EX-4.1) — 90KB
- ea021474101ex5-1_reeauto.htm (EX-5.1) — 9KB
- ea021474101ex5-2_reeauto.htm (EX-5.2) — 11KB
- ea021474101ex10-1_reeauto.htm (EX-10.1) — 194KB
- ea021474101ex10-2_reeauto.htm (EX-10.2) — 55KB
- ex5-2_001.jpg (GRAPHIC) — 6KB
- ex5-2_002.jpg (GRAPHIC) — 2KB
- 0001213900-24-079521.txt ( ) — 393KB
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. REE AUTOMOTIVE LTD. By: /s/ Avital Futterman Name: Avital Futterman Title: General Counsel Date: September 17, 2024 3