REE Automotive Ltd. (REE) Tuesday announced a securities purchase agreement with new and existing investors for the purchase and sale of 6,376,631 ordinary shares at a purchase price of $4.25 per share, resulting in gross proceeds of up to $27 million.
Currently, shares are down 16.22 percent at $5.51 on a volume of 70,971.
The technology company enabling the next generation of software-defined vehicles said additional proceeds are invited into a second closing from existing strategic investors.
The strategic investors includes M&G Investments and Varana Capital. The initial closing of the offering is expected to occur on or about March 19, 2025.
REE revealed that it has invited Motherson Group, an existing shareholder to invest up to $10 million in a second closing for a fully subscribed round by no later than March 28, 2025.
The Company intends to use the net proceeds from the offering for working capital and general corporate purposes.
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