Filed Pursuant to Rule 424(b)(3)
Registration No. 333-258963
PROSPECTUS SUPPLEMENT NO. 1
(to prospectus dated August 30, 2021)
REE AUTOMOTIVE LTD.
39,041,351 Class A Ordinary Shares
5,500,000 Warrants to Purchase Class A Ordinary Shares
15,562,500 Class A Ordinary Shares Underlying Warrants
This prospectus supplement amends and supplements the prospectus dated August 30, 2021 (the “Prospectus”) which forms a part of our Registration Statement on Form F-1, as amended and supplemented (Registration Statement No. 333-258963). This prospectus supplement is being filed to update and supplement the information included in the Prospectus with the GAAP financial statements tables contained in our report of foreign private issuer on Form 6-K, furnished to the Securities and Exchange Commission (the “SEC”) on November 16, 2021 (the “Form 6-K”). Such tables from the Form 6-K are attached to this prospectus supplement.
This prospectus supplement updates and supplements the information in the Prospectus and is not complete without, and may not be delivered or utilized except in combination with, the Prospectus, including any amendments or supplements thereto. This prospectus supplement should be read in conjunction with the Prospectus and if there is any inconsistency between the information in the Prospectus and this prospectus supplement, you should rely on the information in this prospectus supplement.
Our Class A ordinary shares, without par value (“Class A Ordinary Shares”), and warrants to purchase Class A Ordinary Shares (“Warrants”) are traded on The Nasdaq Global Market (“Nasdaq”) under the symbols “REE” and “REEAW,” respectively. The last reported sale price of the Ordinary Shares on November 15, 2021 was $4.19 per share, and the last reported sale price of the Warrants on November 15, 2021 was $0.808 per warrant, as reported on Nasdaq.
You should read the Prospectus and any prospectus supplement or amendment carefully before you invest in our securities. Investing in the Company’s securities involves risks. See “Risk Factors” beginning on page 10 of the Prospectus.
Neither the SEC nor any state securities commission has approved or disapproved of the securities to be issued under the Prospectus or passed upon the adequacy or accuracy of the Prospectus or this prospectus supplement. Any representation to the contrary is a criminal offense.
The date of this prospectus supplement is November 16, 2021.
REE AUTOMOTIVE LTD.
Condensed Consolidated Statements of Operations
U.S. dollars in thousands (except share and per share data)
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||
| Revenues | - | - | 119 | 6 | 336 | |||||||||||||||
| Cost of sales | 324 | 4 | 224 | 339 | 569 | |||||||||||||||
| Gross loss | (324 | ) | (4 | ) | (105 | ) | (333 | ) | (233 | ) | ||||||||||
| Operating expenses: | ||||||||||||||||||||
| Research and development expenses, net | 212,438 | 9,545 | 4,465 | 229,132 | 24,618 | |||||||||||||||
| Selling, general and administrative expenses | 219,507 | 21,590 | 14,301 | 246,545 | 32,520 | |||||||||||||||
| Total operating expenses | 431,945 | 31,135 | 18,766 | 475,677 | 57,138 | |||||||||||||||
| Operating loss | (432,269 | ) | (31,139 | ) | (18,871 | ) | (476,010 | ) | (57,371 | ) | ||||||||||
| Income from warrant revaluation | 17,263 | - | - | 17,263 | - | |||||||||||||||
| Financial income, net | 114 | 8 | 84 | 126 | 377 | |||||||||||||||
| Net loss before income tax | (414,892 | ) | (31,131 | ) | (18,787 | ) | (458,621 | ) | (56,994 | ) | ||||||||||
| Income tax expense | 13 | 45 | - | 58 | - | |||||||||||||||
| Net loss | (414,905 | ) | (31,176 | ) | (18,787 | ) | (458,679 | ) | (56,994 | ) | ||||||||||
| Net comprehensive loss | (414,905 | ) | (31,176 | ) | (18,787 | ) | (458,679 | ) | (56,994 | ) | ||||||||||
| Basic and diluted net loss per share | (1.57 | ) | (0.16 | ) | (0.12 | ) | (2.09 | ) | (0.37 | ) | ||||||||||
| Weighted average number of ordinary shares and preferred shares used in computing basic and diluted net loss per share | 264,141,657 | 198,999,979 | 159,596,841 | 219,207,053 | 152,393,020 | |||||||||||||||
2
REE AUTOMOTIVE LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands (except share and per share data)
| September 30, | December 31, | |||||||
| 2021 | 2020 | |||||||
| Unaudited | Audited | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 294,489 | $ | 44,707 | ||||
| Restricted cash | 1,074 | 800 | ||||||
| Short-term deposits | - | 1,667 | ||||||
| Inventory | 253 | 271 | ||||||
| Trade receivables | 1 | 55 | ||||||
| Other receivables and prepaid expenses | 10,612 | 428 | ||||||
| Total current assets | 306,429 | 47,928 | ||||||
| NON-CURRENT ASSETS: | ||||||||
| Deferred transaction costs | - | 328 | ||||||
| Property and equipment, net | 1,921 | 755 | ||||||
| Total non-current assets | 1,921 | 1,083 | ||||||
| TOTAL ASSETS | $ | 308,350 | $ | 49,011 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Trade payables | $ | 3,399 | $ | 970 | ||||
| Other payables and accrued expenses | 7,358 | 2,260 | ||||||
| Deferred revenues | 578 | - | ||||||
| Total current liabilities | 11,335 | 3,230 | ||||||
| NON-CURRENT LIABILITIES: | ||||||||
| Warrants liability | 14,795 | - | ||||||
| Total non-current liabilities | 14,795 | - | ||||||
| TOTAL LIABILITIES | 26,130 | 3,230 | ||||||
| SHAREHOLDERS’ EQUITY: | ||||||||
| Ordinary and Preferred shares(1) | - | - | ||||||
| Additional paid-in capital | 850,077 | 154,959 | ||||||
| Accumulated deficit | (567,857 | ) | (109,178 | ) | ||||
| Total shareholders’ equity | 282,220 | 45,781 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 308,350 | $ | 49,011 | ||||
| (1) | Shares and per share data are presented on a retroactive basis to reflect the stock split following completion of the Merger on July 22, 2021. |
3
REE AUTOMOTIVE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
U.S. dollars in thousands
(Unaudited)
| Nine Months Ended September 30, | ||||||||
| 2021 | 2020 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | (458,679 | ) | (56,994 | ) | ||||
| Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation | 292 | 115 | ||||||
| Capital loss | 92 | 18 | ||||||
| Share-based compensation | 433,962 | 48,039 | ||||||
| Revaluation of warrants liability | (17,263 | ) | - | |||||
| Transaction costs related to warrants | 2,887 | - | ||||||
| Decrease in inventory | 18 | 49 | ||||||
| Decrease (increase) in trade receivables | 54 | (61 | ) | |||||
| Increase in other receivables and prepaid expenses | (10,124 | ) | (343 | ) | ||||
| Increase in trade payables | 2,635 | 866 | ||||||
| Increase in other payables and accrued expenses | 4,879 | 767 | ||||||
| Deferred revenues | 578 | - | ||||||
| Net cash used in operating activities | (40,669 | ) | (7,544 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Proceeds from deposits | 1,667 | - | ||||||
| Purchase of property and equipment | (1,428 | ) | (510 | ) | ||||
| Net cash provided by (used in) investing activities | 239 | (510 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from exercise of warrants to preferred shares | 2,907 | - | ||||||
| Proceeds from merger, net of transaction costs | 287,579 | - | ||||||
| Proceeds from exercise of ordinary shares | - | 209 | ||||||
| Proceeds from issuance of Preferred shares, net | - | 25,825 | ||||||
| Net cash provided by financing activities | 290,486 | 26,034 | ||||||
| Increase in cash, cash equivalents and restricted cash | 250,056 | 17,980 | ||||||
| Cash, cash equivalents and restricted cash at beginning of year | 45,507 | 27,712 | ||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 295,563 | $ | 45,692 | ||||
4