Five years after listing on Nasdaq through a SPAC merger at a market cap of $3.1 billion, Israeli auto-tech company REE Automotive (Nasdaq: REE) reached the end of the road last week, at least as a publicly traded company, with a Nasdaq delisting notice. The company currently has a market cap of just $6.11 million.
The company has also filed a request with the Tel Aviv District Court for a stay of proceedings, while at the same time, announing that Nasdaq management informed it that due to non-compliance with the trading conditions, its shares would be delisted from trading on July 7. The company has the option to appeal Nasdaq's decision, but has no plans to do so. The reason for the delisting is a share price that has been below $1 over time.
In the company's request to the court, through attorneys Herzog Fox Neeman, REE asks for a temporary stay of proceedings during which its operations will continue as a going concern, in order to formulate and approve a debt settlement. The company will appoint Adv. Amit Pines from FBC to manage the debt settlement.
REE’s request states that it is developing groundbreaking technologies for modular platforms and electronic control systems for electric commercial vehicles. "Given a series of exogenous factors, the company has found itself in a severe cash flow crisis and in a state of cash flow insolvency due to the lack of sources of financing to continue its operations," it said. "At the same time, this is a company with unique and groundbreaking technology that holds valuable intellectual property, an international reputation and a skilled team, which is worthy and right to act for its economic rehabilitation."
REE's debts to employees amount to NIS 12.2 million, according to the request, and to general creditors - NIS 39.3 million. The company explains the reasons for its situation with a combination of business, financial and macroeconomic factors, including an investment-intensive business model, US tariff policy, a transition to a software-based and licensing model, a deterioration in its ability to raise capital, geopolitical difficulties (including Israel’s recent wars), and more.
Published by Globes, Israel business news - en.globes.co.il - on July 5, 2026.
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