Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 100

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 100
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 2025 Securities Purchase Agreements & Lock-up Agreement

On March 18, 2025, we entered into a securities purchase agreement with certain institutional and accredited investors, providing for the issuance of an aggregate of 6,376,631 Class A Ordinary Shares at a purchase price of $4.25 per ordinary share, or the March 18 Offering. The March 18 Offering closed on March 19, 2025, and the offering resulted in gross proceeds to the Company of approximately $27.1 million. The Company intends to use the net proceeds from this offering for working capital and general corporate purposes.

In connection with the March 18 Offering, each of the directors and executive officers of the Company entered into a lock-up agreement, pursuant to which they agreed not to sell or transfer any of the Company securities which they hold, subject to certain customary exceptions, during the sixty (60)-day period following the closing date of the offering. Additionally, the Company agreed that for a period of sixty (60) days from the closing date of the offering, it will not: (i) issue, enter into any agreement to issue or announce the issuance or proposed issuance of any ordinary shares or equivalent securities; or (ii) file any registration statement or amendment or supplement thereto (other than on Form S-8 or in connection with any employee benefit plan). In addition, the Company agreed that it will not conduct any sales of ordinary shares or equivalent securities involving a variable rate transaction (as defined in the Purchase Agreement) for a period of six (6) months from the closing date of the offering, subject to certain exceptions as described in the Purchase Agreement.

The Company also entered into a placement agency agreement with A. G. P., pursuant to which the Company engaged A. G. P. as the exclusive placement agent in connection with the offering. The Placement Agent agreed to use its best efforts to arrange for the sale of the Class A Ordinary Shares. In addition, pursuant to the terms of the placement agency agreement, we agreed to pay the Placement Agent a placement agent fee in cash equal to eight percent (8%) of the aggregate gross proceeds raised in the offering from certain investors, provided, however that the cash fee shall be two percent (2%) with respect to proceeds raised from certain other investors and certain existing shareholders of the Company. We also agreed to reimburse the Placement Agent at closing for legal and other accountable expenses incurred by them in connection with the offering in an aggregate amount not to exceed $70,000. Similarly, we