Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 104

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 104
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 terms of the Credit Facility were extended through June 30, 2025. In March 2024, the terms of the credit facility were extended through December 31, 2025. Outstanding loans under the Credit Facility bear a variable

Table of C ontents

interest at the rate of the Monthly Term Secured Overnight Financing Rate, or SOFR, plus an annual margin of 3.5%. The interest is payable on a monthly basis. Under the terms of the Credit Facility, we are required to keep unsecured deposits in the aforementioned bank in the amount of $20 million. In November 2024, the agreement was amended to increase the Credit Facility amount to $18,000 while the unsecured deposit amount was reduced to $18,000. Under certain terms, the bank has the right to offset loans drawn under the Credit Facility with the deposits kept in the bank. We are charged a fee of 0.25% per annum on amounts available for draw that are undrawn under the Credit Facility.

As of December 31, 2024 and 2023 we have utilized $18,000 and $15,000, respectively, under the Credit Facility for short term loan. In January 2025 and January 2024, respectively, the short term loan was fully repaid by us. As of December 31, 2024 and 2023 the annual interest rate for the loan utilized under the Credit Facility was 7.86% and 8.86%, respectively.

Additionally, towards the end of 2024, we obtained a non-binding term sheet for a $15 million credit facility from a large bank in Israel, which needed 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. See Item 3. D. under the section titled “ REE expects that it will need to raise additional funds and these funds may not be available to it when it needs them, or may only be available on unfavorable terms. As a result, REE may be unable to meet its future capital requirements, which could limit its ability to grow and jeopardize its ability to continue its business operations. ”

Cash Flows Summary

Presented below is a summary of our operating, investing and financing cash flows for the years ended December 31, 2024 and 2023:

                                                                   Year ended December 31,                                        
                                                                   2024