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BREA, Calif. - Mullen Automotive Inc. (NASDAQ: MULN), an electric vehicle manufacturer, has announced a 1-for-100 reverse stock split of its common stock, set to take effect on April 11, 2025. The move is aimed at complying with the Nasdaq's minimum bid price requirement. According to InvestingPro data, the stock is currently trading at $0.05, near its 52-week low, having declined 100% over the past year.
The reverse stock split was approved by the company's stockholders at the Annual Meeting on March 13, 2025, and later by the board of directors. It will reduce the number of shares from approximately 220 million to about 2.2 million. The company's common stock will continue to trade on the Nasdaq Capital Market under the ticker symbol MULN, with a new CUSIP number 62526P703, once the split-adjusted trading commences. InvestingPro analysis reveals concerning financial metrics, including a weak financial health score and significant cash burn rate. Subscribers can access 18 additional ProTips and comprehensive financial analysis.
This corporate action will not change the par value of the stock nor the authorized number of shares. Adjustments will be made to outstanding equity awards, warrants, and convertible notes, as well as to the per share conversion price of the preferred stock. However, the number of shares reserved for issuance under the company's 2022 Equity Incentive Plan will remain unaltered by the reverse stock split ratio.
No fractional shares will be issued in connection with the reverse stock split. Instead, shareholders will receive a rounded up whole share in lieu of any fractional share. The reverse stock split is intended to affect all stockholders uniformly and will not alter any stockholder's percentage interest in the company's equity, except for the minor changes due to rounding.
Continental Stock Transfer & Trust Company will act as the exchange agent for the reverse stock split. Shareholders holding pre-split shares in electronic form need not take any action to receive post-split shares. Those owning shares through a broker or other nominee will see their positions automatically adjusted to reflect the reverse stock split.
Mullen Automotive, based in Southern California, has manufacturing facilities in Tunica, Mississippi, and Mishawaka, Indiana. The company has recently expanded its commercial dealer network across various strategic markets in the United States. Financial data from InvestingPro shows the company faces significant challenges, with a current ratio of 0.24 and substantial debt obligations. The company's next earnings report is scheduled for May 14, 2025, which could provide crucial insights into its financial trajectory.
The information in this article is based on a press release statement from Mullen Automotive Inc.
In other recent news, Mullen Automotive Inc. reported a record GAAP revenue of $3.18 million for the quarter ending March 31, 2025, marking a significant increase from the previous fiscal year's total revenue of $1.1 million. This surge in revenue highlights the sales potential for Mullen's commercial electric vehicles, including the Mullen ONE and Mullen THREE, both of which meet U.S. safety and emissions standards. Mullen also revealed plans for cost-cutting measures, such as staff reductions and facility eliminations, to enhance financial efficiency. In legal developments, a federal judge allowed Mullen's lawsuit alleging stock manipulation by several financial entities to proceed, advancing the case to the discovery phase. The company has also terminated a purchase agreement with Volt Mobility, which had planned to distribute Mullen's EVs in the United Arab Emirates, a move that could impact Mullen's Middle Eastern market strategy. Furthermore, Mullen and its majority-owned Bollinger Motors have increased U.S. sourcing for their vehicles, with Bollinger beginning deliveries of its B4 chassis cab truck. These recent developments reflect Mullen's ongoing efforts to grow its electric vehicle business and adapt to market dynamics.
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