REE on the way to debt settlement: Gil Agmon and Ziv Aviram invested. CEO: Like Intel

The company submitted to the District Court in Tel Aviv-Jaffa a request for a stay of proceedings, and at the same time announced that the NASDAQ management informed it that due to non-compliance with the trading conditions, its shares will be deleted on July 7. The company has the option of appealing the NASDAQ determination, but it does not intend to do so. The reason for the deletion is a share price that is lower than one dollar for a long time.

● The takeover attempt that cost Barak Rosen and Assi Tochmeyer a quarter of a billion shekels
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In the company’s application submitted to the court by its attorney from Herzog Fox Naman & Co., it requests a temporary stay of proceedings, during which its activities will continue as a going concern. This is to consolidate and approve a debt settlement. The company proposes to appoint Adv. Amit Pines from the office of Adv.

Part of the SPAC trend

REE, under the management of the founder Daniel Barel (who founded it with Ahashi Sardes, who serves as the chief technology officer), arrived on the Nasdaq during the hype period of the SPAC companies, which raised money from the public and merged into the contents of private companies. At that time, even losing companies, which presented a rosy forecast for future growth – received respectable values. Later, the trend changed, and like many companies, REE also lost a considerable share worth

The company has developed a modular platform that includes all the drive assemblies needed for an electric vehicle. In an interview with Globes at the end of 2021, Barel promised that the company would not be required to raise additional capital until production begins and compared REE to Intel: “Intel will win whether Dell wins in the computer market, or if Lenovo wins. Everything is built around its processor. We are like Intel in the automotive world,” he said.

When asked where he expects to see REE in two or three years (ie 2023-2024) he replied: “Among the largest companies in the field.” Among the investors in the company before the IPO were well-known names such as the Phoenix, the controlling owner of Delek Car Gil Agmon, the founder of Mobilay Ziv Aviram, the Red Biomed company of Yehuda and Nava Zisafel and Kelal Insurance – none of them are interested today.

However, reality did not match expectations. Last year, the company’s reports were accompanied by the note “going concern” and later it was reported that it was laying off half of its employees (according to the application to the court, after more rounds of layoffs, the company currently employs 31 employees in Israel, compared to 270 employees when it arrived on Wall Street). At the end of 2025, the company warned that without raising capital, it would run out of money in the second half of 2026.

In 2025, the company recorded revenues of only 1.3 million dollars, and its loss reached 55.8 million dollars. Since its founding in 2011, the company has burned over a billion dollars.

A variety of reasons for falling

The company’s application states that “in view of a series of exogenous factors, the company has fallen into an acute cash flow crisis and a situation of cash solvency in the absence of funding sources to continue its activities. At the same time, this is a company with a unique and groundbreaking technology that owns valuable intellectual property, an international reputation and a skilled team, which is worthy and right to work for its financial rehabilitation.”

According to the request, REE’s debts to employees amount to 12.2 million shekels, and to general creditors 39.3 million shekels (a total of 51.5 million dollars). The company attributes the reasons for its situation to a combination of business, financial and macroeconomic factors, including an investment-intensive business model, the tariff policy in the United States, a shift to a software- and licensing-based model, the deterioration in the ability to raise capital, geopolitical difficulties (including The “Iron Swords” war and the fighting against Iran) and more.

According to the request, the company “worked tirelessly” to find solutions, including, for example, efficiency measures, including stopping the production activity. Accordingly, the monthly cash burn rate dropped from 5-6 million dollars a month to about 2 million dollars. The company hired a bank to find a buyer for it and negotiations were conducted on the matter with a party that expressed interest, but finally gave up.

The principles of the outline proposed by REE include the continuation of its activities with the operating surpluses being used as one of the sources of the settlement, alongside the restructuring of the debt and capital structure, becoming a private company and the injection of funds by investors.