REE Automotive tumbles after direct stock deal priced

U.S.-listed shares of Israeli electric truck maker REE Automotive REE.O tumble 35% to $4.27, a six-mth low, on Tues after co raises equity

Co early Tues said entered agreements to sell ~6.4 mln shares to new and existing investors at $4.25 for $27 mln gross proceeds as part of registered direct offering

REE shares closed at $6.57 on Mon

India-based auto parts major Samvardhana Motherson SAMD.NS, which has ~19% stake in REE, has been invited to invest up to $10 mln in a second closing round by Mar 28, REE said

The EV startup expects to use net offering proceeds for working capital, other general purposes

Earlier on Tues, co said it's set to ink $770 mln exclusive supply deal with an undisclosed firm to provide technology to help make autonomous vehicles

REE has ~22.26 mln shares outstanding for roughly $95 mln market cap, and ~13.12 mln shares of free float, per LSEG data

With move on the session, stock down ~51% YTD following ~72% gain in 2024