Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 4

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 4
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REE’s ability to successfully carry out its business plan, including its production activities, is dependent upon its ability to raise sufficient additional capital. There are no assurances, however, that REE will be successful in obtaining any needed capital or an adequate level of financing needed to support its operations and business. REE may not be able to timely secure additional debt or equity financing on favorable terms, or at all. If we raise additional funds through the issuance of equity or convertible debt or other equity-linked securities, our existing shareholders could experience varying levels of dilution, depending on the circumstances, including in connection with the anti-dilution provisions under our Convertible Notes. Any debt financing or credit facilities obtained by REE in the future would likely involve restrictive covenants relating to its capital raising activities and other financial and operational matters, which may make it more difficult for REE to obtain additional capital, to pursue business opportunities, and which can result in harsh consequences in the event of a default, such as a potential lender taking over control of our business or our business assets. Towards the end of 2024,

Table of C ontents

we entered into a detailed non-binding term sheet for a $15 million credit facility with a large bank in Israel, which needs to be converted into a binding agreement. To-date, we have been negotiating definitive documents for such credit facility, however we do not believe that we will sign a definitive agreement by the expiration date of the term sheet.. If we are unable to obtain adequate financing or financing on terms satisfactory to us and in the amounts needed when we require them, we will not be able to implement our business plan and will need to delay, scale back, or abandon some or all of our production and business operations and/or wind down or restructure our business and/or seek protection from creditors.

Additionally, any inability to fund our business could cause our customers, suppliers, strategic partners, or other third parties to decrease the amount of business they do with us or terminate their relationship with us, or we could go into default on our outstanding Convertible Notes, or have our credit facility revoked, which, in turn, would permit our creditors to enforce remedies against us, including by taking control of our business, and cause us to consider reducing, discontinuing, or selling operations or seeking protection from creditors, and further raise substantial doubt about our ability to continue as a going concern. Any of the foregoing could materially and adversely harm REE’s business, financial condition and results of operations, including by adversely affecting our ability to