REE Automotive tumbles after direct stock deal priced

Samvardhana Motherson International

18/03/2025 15:38

**  U.S.-listed shares of Israeli electric truck maker REE Automotive REE.O tumble 35% to $4.27, a six-mth low, on Tues after co raises equity

 ** Co early Tues said entered agreements to sell ~6.4 mln shares to new and existing investors at $4.25 for $27 mln gross proceeds as part of registered direct offering

    ** REE shares closed at $6.57 on Mon

    ** India-based auto parts major Samvardhana Motherson SAMD.NS, which has ~19% stake in REE, has been invited to invest up to $10 mln in a second closing round by Mar 28, REE said

    ** The EV startup expects to use net offering proceeds for working capital, other general purposes

    ** Earlier on Tues, co said it's set to ink $770 mln exclusive supply deal with an undisclosed firm to provide technology to help make autonomous vehicles

** REE has ~22.26 mln shares outstanding for roughly $95 mln market cap, and ~13.12 mln shares of free float, per LSEG data

** With move on the session, stock down ~51% YTD following ~72% gain in 2024

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))