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Investing.com -- Ree Automotive Ltd. has priced its offering of class A shares, aiming to use the net proceeds for working capital and other general corporate purposes.
The company has signed securities purchase agreements with new institutional investors as well as some of its existing strategic investors, which include M&G Investments and Varana Capital.
The agreements involve the purchase and sale of 6,376,631 ordinary shares at a purchase price of $4.25 per share. The Motherson Group, a current shareholder and a leading automotive supplier globally, has been invited to invest up to $10 million in a second closing for a fully subscribed round.
This investment is expected to be completed no later than March 28, 2025, as part of a registered direct offering. This could result in gross proceeds of up to approximately $27 million at closing(s), before the deduction of placement agent commissions and other offering expenses.
However, the shares of Ree Automotive have experienced a decrease in pre-market trading, down by 23% on 3,285 shares traded. The offering price represents a 35.3% discount to the last close. As of June 30, the company had 11.1 million shares outstanding, with a 6.47 million-share float.
Over the past month, the shares have seen a decrease of 20.6%.
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