The share price of REE Automotive Ltd. (REE) increased 8.61% after-hours on Friday after the company announced the results of its share exchange offer. The stock fell by -29.24% to close at $0.75 at the end of the last trading session.
How has REE described its offer results?
A previously announced exchange offer (the “Offer”) by REE Automotive (REE) has expired, and its consent solicitation (the “Consent Solicitation”) has ended. In the offer, REE offered to purchase public warrants to buy Class A ordinary shares of the Company, with no par value (the “Class A ordinary shares”), which trade under the symbol “REEAW” (the “public warrants”).
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- Those warrants may be used for the purchase of ordinary shares in Class A under the private placement warrants. The Offer and Consent Solicitation ended on September 22, 2022, at midnight Eastern Time.
- On or about October 6, 2022, REE Automotive expects to accept all validly tendered warrants for exchange and settlement as part of its Offer and Consent Solicitation.
- Additionally, REE received approval for about 84% of the outstanding public warrants pursuant to the Consent Solicitation.
- The amendment to the warrant agreement governing REE’s private placement warrants (the “Warrant Amendment”) was approved by approximately 82% of the outstanding warrants.
- For the Warrant Amendment to take effect, 50% of the outstanding public warrants must be amended, as well as 50% of the outstanding private placement warrants required to effect any amendment to the terms or provisions of the warrant agreement relating to the private placement warrants.
- A Warrant Amendment dated September 23, 2022, was thus entered into between REE and Continental Stock Transfer & Trust Company.
What else has REE shared?
Upon the closing of the Offer, REE Automotive (REE) will exercise its right to exchange each warrant that is outstanding for 0.18 Class A ordinary shares per warrant in accordance with the Warrant Amendment (the “Post-Offer Exchange”). The Post-Offer Exchange date has been set for October 10, 2022, after which no warrants for public or private placement will remain outstanding after that date.
