Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 77

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 77
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& P SmallCap 600. However, in April 2023, it reversed this policy and announced that companies with dual or multi-class capital structures will again be eligible for inclusion in its indices. MSCI and FTSE Russell had similar discussions surrounding the issue of dual classes as well. Due to the policy discussions of index providers, we cannot guarantee that we will not be excluded from an index due to our dual share class. In the event that REE is ineligible for inclusion in an index, mutual funds, exchange-traded funds and other investment vehicles that attempt to passively track such index would not invest in our Class A Ordinary Shares. Given the sustained flow of investment funds into passive strategies that seek to track certain indexes, exclusion from

Table of C ontents

indexes could make our Class A Ordinary Shares less attractive to other investors. In addition, certain proxy advisory firms oppose the use of multiple class structures and may publish negative commentary about our corporate governance practices or otherwise seek to cause us to change our capital structure. As a result, the market price of Class A Ordinary Shares could be adversely affected.

In addition, institutional investors and certain investment funds may also be precluded, reluctant or unwilling to invest in entities with dual class structures due to a lack of ability to meaningfully influence corporate affairs and policies through voting. Such restrictions, reluctance and unwillingness may make our Class A Ordinary Shares less attractive to investors and, as a result, the market price of our Class A Ordinary Shares could be adversely affected.

The market price of REE’s Class A Ordinary Shares has been extremely volatile and may continue to be volatile due to numerous circumstances beyond our control.

The market price of our Class A Ordinary Shares has fluctuated, and may continue to fluctuate, widely, due to many factors, some of which may be beyond our control. These factors include, without limitation:

•“short squeezes”;

• comments by securities analysts or other third parties, including blogs, articles, message boards and social and other media;

• large stockholders exiting their position in our securities or an increase or decrease in the short interest in our securities;

• actual or anticipated fluctuations in our financial and operating results;

• changes in foreign currency exchange rates;

• the commencement, enrollment or results of our planned or future clinical trials of our product candidates or those of our competitors;

• regulatory or legal developments in the United States and other countries;

• the success of competitive products or technologies;

• developments or disputes concerning patent applications, issued patents or other proprietary rights;

• the recruitment