What you need to know:
- REE Automotive's stock has been below $1.00 per share for 30 consecutive business days (May 15 – June 27, 2025), putting it in violation of the Nasdaq’s minimum bid price rule.
- Nasdaq has given REE 180 calendar days (until December 29, 2025) to raise its stock price back to at least $1.00 for 10 consecutive business days to regain compliance.
- If REE fails to comply by the deadline, it may qualify for a second 180-day extension if it meets other listing requirements (except the bid price) and submits a plan (possibly including a reverse stock split).
- REE is still listed on Nasdaq, and says this notice has no immediate impact.
REE Automotive, one of the most promising new companies in the electrified commercial vehicle market, has confirmed it is currently not in compliance with the Nasdaq's minimum price rule.
REE is the manufacturer behind the battery-electric Class 4 P7 chassis cab, which is on sale in all 50 states. A 50,000 annual output is planned.
[Related: REE Automotive PC-7 chassis cab now available in all 50 states]
The Tel Aviv-based company has acknowledged it received the letter last week from the stock exchange, which stated that REE's closing bid for its Class A ordinary shares dipped below $1.00 per share for the last 30 consecutive business days, starting on May 15, 2025 through June 27, 2025.
Per its rules, Nasdaq officials have given REE 180 calendar days to regain compliance, with a deadline of December 29, 2025.
REE says that it "if at any time during this 180-day period, the closing bid price of its Ordinary Shares is at least $1.00 for a minimum period of ten consecutive business days, in which case the Company (REE) will be provided with a written confirmation of compliance from Nasdaq and this matter will be closed."
If REE fails to demonstrate compliance by the deadline, its ordinary shares will likely be delisted. However, there is a chance REE could receive a second 180-day extension if it fails to meet the end of year deadline as long as it "meets the continued listing requirement for the market value of its publicly held shares and all other initial listing standards for the Nasdaq Capital Market, with the exception of the bid price requirement."
[Related: REE Automotive signs development deal for P7-based autonomous vehicles]
Eligibility for this extension also depends on REE providing an additional written notice of intention to fix the deficiency during the second compliance time frame by opting for, as a last resort, a reverse stock split. Understandably, this would be REE's least desired approach because a reverse stock split involves reducing the number of outstanding shares that results in a price per share increase.
If REE cannot ultimately "cure the deficiency," then Nasdaq officials will proceed with delisting, though the company can appeal this in an official hearing.
For the time being, REE reiterates it will closely monitor the closing bid price of its ordinary shares through the late December deadline and that there's no immediate effect on its listing.
