Mullen announces reverse stock split to comply with Nasdaq

BREA, Calif. - Mullen Automotive Inc. (NASDAQ:MULN), an electric vehicle manufacturer, will enact a 1-for-100 reverse stock split of its common stock effective September 17, 2024. The move is aimed at complying with the Nasdaq's minimum bid price requirement. The stock will continue to trade on the Nasdaq Capital Market under the ticker MULN, starting on a split-adjusted basis when the market opens on the effective date.

The reverse stock split was approved by the company's stockholders at a special meeting held on September 9, 2024, and the board of directors has decided on the 1-for-100 ratio. This action will consolidate every 100 current shares of common stock into one issued and outstanding share. Adjustments will also be made to outstanding equity awards, warrants, and convertible notes in proportion to the split ratio, but the number of shares reserved for issuance under the company's 2022 Equity Incentive Plan will remain unchanged.

The reverse stock split will not alter the par value of the common stock or the authorized number of shares. No fractional shares will be issued; instead, fractional shares will be rounded up to the nearest whole share. This process is intended to affect all stockholders uniformly and will not change any stockholder's percentage interest in the company's equity, except for minimal changes due to the elimination of fractional shares.

Mullen's transfer agent, Continental Stock Transfer & Trust Company, will act as the exchange agent for the reverse stock split. Stockholders with pre-split shares held electronically in book-entry form do not need to take any action to receive post-split shares. Those holding shares through a broker or other nominee will see their positions automatically adjusted.

This announcement follows Mullen's recent operational milestones, including the start of commercial vehicle production in Tunica, Mississippi, in August 2023, and the receipt of IRS approval for federal EV tax credits on its commercial vehicles. Mullen's vehicles have also received certification from the California Air Resource Board (CARB) and the Environmental Protection Agency (EPA), with the Mullen THREE Class 3 EV truck being eligible for a cash voucher of up to $45,000 at the time of purchase under CARB's HVIP approval.

The information in this article is based on a press release statement from Mullen Automotive Inc.

In other recent news, Mullen Automotive, owner of Bollinger Motors, has been expanding its presence in the electric vehicle market through a series of strategic partnerships and certifications. Bollinger Motors received California Air Resources Board certification for its B4 chassis truck, a Class 4 commercial vehicle, opening up potential savings for customers through state incentives and federal tax credits. The company has also broadened its dealer network through partnerships with Affinity Truck Center and TEC Equipment Inc., improving its reach in California's Central Valley and key Western U.S. markets.

Bollinger Motors has entered into agreements with Texas Consulting & Development, LLC and Volt Mobility, a UAE-based leasing company, to supply Bollinger B4 Class 4 electric trucks and 3,000 Class 1 and Class 3 EVs respectively. Mullen Automotive has further strengthened its financial position by issuing over 13 million shares to Esousa Holdings LLC and over 3 million shares to Silverback Capital Corporation.

Bollinger Motors is scheduled to commence serial production of the B4 on September 16, 2024, with customer deliveries expected to begin the following month. These recent developments reflect Mullen Automotive's continued efforts to enhance its market presence and meet the growing demand for electric commercial vehicles.

InvestingPro Insights

In light of Mullen Automotive Inc.'s (NASDAQ:MULN) recent decision to undergo a 1-for-100 reverse stock split, it is crucial for investors to consider the company's financial health and market performance. According to InvestingPro data, Mullen Automotive has a market capitalization of just $20.69 million, which is relatively small for a company listed on the Nasdaq Capital Market. This small market cap may reflect investor concerns about the company's future prospects.

InvestingPro Tips highlight that Mullen Automotive's stock is currently in oversold territory, as indicated by the RSI metric. This could suggest a potential rebound in the stock price if the market deems the sell-off to be overdone. However, it's important to note that the company has been quickly burning through cash, which is a significant risk factor for investors to consider. Furthermore, the stock has experienced a substantial decline over the last week, month, and year, with the price total return over the last year plummeting by an alarming -99.66%.

On the financial performance front, Mullen's revenue for the last twelve months as of Q3 2024 stands at a mere $0.16 million, with a gross profit margin of -1364.48%, indicating that the company is not only generating minimal revenue but also doing so at a significant loss. These numbers, combined with a negative free cash flow yield as implied by valuation, paint a challenging picture for the company's near-term financial stability.

For investors seeking more detailed analysis and additional InvestingPro Tips, there are 16 more tips available at https://www.investing.com/pro/MULN. These tips could provide further insights into Mullen's performance and help investors make more informed decisions amidst the company's latest strategic moves.

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