REE Automotive Ltd. ( REE ) shares are moving lower on Tuesday after the company announced the pricing of a $27 million registered direct offering.

What To Know: The company is pricing 6,376,631 shares at $4.25 per share. REE intends to use the net proceeds for working capital and general corporate purposes.

What Else: REE entered into a non-binding memorandum of understanding (MOU) with a global technology company. The MOU outlines the companies’ intent to develop and produce autonomous driving vehicles based on REE’s existing P7 platform.

The companies aim to finalize an agreement by the end of 2025, which, if signed, could generate up to $770 million in revenue over the next five years.

“We are very excited to see our advanced SDV technology reshaping the future of autonomous transportation at scale as it is being integrated into vehicles and applications outside of REE,” said Daniel Barel, CEO and co-founder of REE.

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REE Price Action: At the time of writing, REE shares are trading 34% lower at $4.33, according to data from Benzinga Pro.

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