UPDATE:
REE Automotive has confirmed it has now entered into securities purchase agreements with "certain existing strategic investors," including M&G Investments and Motherson Group - one of the world's biggest automotive suppliers - for the purchase and sale of 2,219,176 ordinary shares priced at $4.25 per share. This is expected to generate gross proceeds of up to an estimated $9.4 million before offering expenses.
Combined with the announcement from March 18 (below), the complete registered direct offering now totals $36.4 million.
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Tel Aviv-based REE Automotive (REE) is back in the news again with two significant announcements.
The manufacturer of the Class 4 battery-electric chassis cab, which runs on a fully drive-by-wire system, has confirmed it's entered into a non-binding memorandum of understanding (MOU) with an undisclosed "global technology company" to develop and market new mobility solutions for both passenger and freight transport.
The MOU dictates the companies' mutual intention to develop and produce thousands of autonomous-driving vehicles, which will be based on REE's P7 platform. The companies confirmed plans to officially sign the collaboration agreement, which is expected to generate upwards of $770 million in revenue over a five-year period, by year's end. The first production-ready vehicles are expected to be ready in 2027.
[Related: REE Automotive selects Roush to build P7 chassis cab]
The P7 platform already meets Federal Motor Vehicle Safety Standards and its Unified Architecture is designed specifically for real-time decision making regarding vehicle dynamics, safety, energy management, and redundancy and autonomy.
“We are very excited to see our advanced SDV technology reshaping the future of autonomous transportation at scale as it is being integrated into vehicles and applications outside of REE,” said Daniel Barel, CEO and co-founder of REE Automotive. “We believe that using our AD-ready and certified P7 platform and our advanced software technology allow us to bring this program to the market swiftly and with minimal investment offering a truly modular, adaptive and cost-effective autonomous solution.”
REE's software is just the first step towards the next generation of autonomous vehicles which, according to the company, will be fully scalable, flexible and can integrate over-the-air updates.
The company has also announced today it's entered into securities purchase agreements with new and some existing investors, including M&G Investments and Varana Capital, for the specific purchase and sale of 6,376,631 ordinary shares at a price of $4.25 per share. This is expected to generate gross proceeds to an estimated $27 million, before some expenses.
One of the world's largest automotive suppliers and already a REE shareholder, Motherson Group, has been offered the opportunity to invest up to $10 million in a second closing round. It has until March 28 to do so.
REE states it plans to use the net proceeds for working capital and other essential corporate expenses.
