Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 58

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 58
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 continued listing rules require that listed securities maintain a minimum bid price of $1.00 per share, and that a failure to meet the minimum bid price requirement exists if the

deficiency continues for a period of 30 consecutive business days or more. On November 1, 2023, REE received a notification letter from Nasdaq Listing Qualifications staff notifying REE that it had regained compliance with the minimum bid price requirement set forth in the Nasdaq Listing Rule 5550(a)(2).

If REE fails to satisfy the continued listing requirements of Nasdaq, such as the corporate governance requirements or the minimum closing bid price requirement, Nasdaq may take steps to delist the Class A Ordinary Shares. Such a delisting would likely have a negative effect on the price of the Class A Ordinary Shares and would impair your ability to sell or purchase the Class A Ordinary Shares when you wish to do so. In the event of a delisting, REE can provide no assurance that any action taken by it to restore compliance with listing requirements would allow its Class A Ordinary Shares to become listed again.

Our significant shareholders have influence and may be able to exert substantial influence over REE, including over decisions that require the approval of shareholders, and their interests may conflict with the interests of other shareholders, which could materially adversely impact REE as a public company and our shareholders’ investment in our company.

Among other investors, M& G Investment Management Limited and its affiliates, or M& G, along with Motherson Group have reported beneficially owning significant amounts of our Class A Ordinary Shares (including through the exercise of

Table of C ontents

our Warrants or Convertible Notes in the case of M& G, subject to its 19.99% beneficial ownership blocker) in benficial ownership filings with the SEC. As a result, in addition to other investors, these shareholders and their affiliates may have influence over the management and affairs of our Company and, if they were to decide to act either alone or together with other shareholders, could have the ability to significantly influence matters submitted to our shareholders for approval, notwithstanding REE’s dual class structure, and in particular in circumstances where the holders of Class B Ordinary Shares are not aligned. For example, such shareholder(s) may encourage, cause or seek to cause REE to consider or explore extraordinary corporate transactions including a merger, reorganization or going-private transaction that could result in the de-listing or de-registration of our Class A Ordinary Shares, sales or acquisitions of assets or businesses, changes