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BREA, Calif. - Mullen Automotive Inc. (NASDAQ:MULN), an electric vehicle manufacturer with a current market capitalization of just $3 million, has announced the acquisition of an additional 21% ownership in Bollinger Motors, Inc., increasing its total stake to 95%. This strategic move enhances shareholder equity by around $3.5 million and marks a significant step in Mullen’s commitment to Bollinger’s future and its customers. According to InvestingPro data, Mullen faces significant financial challenges, with a weak overall financial health score of 0.53.
The transaction also sees Mullen extinguishing substantial debt and regaining complete control of Bollinger Motors, which will continue to function as a primarily owned Mullen subsidiary. This debt management is crucial as InvestingPro analysis shows the company operates with significant debt burden and its short-term obligations exceed liquid assets, with a concerning current ratio of 0.25. Bollinger’s operations will remain independent, retaining its brand identity and focus, while Mullen will provide full financial support for sales, service, and warranties of Bollinger vehicles.
David Michery, CEO and chairman of both Mullen Automotive and Bollinger Motors, expressed the company’s belief in Bollinger’s vehicle lineup and future by resolving claims and debt that had previously led to court-ordered receivership for Bollinger. The court has since discharged the receiver and dismissed the case, allowing Bollinger to proceed with its operations under Mullen’s ownership. Financial metrics from InvestingPro indicate the company faces profitability challenges, with a negative gross profit margin of -241% and significant cash burn rate.
Bollinger will immediately intensify sales activities and streamline operations, concentrating on the development and production of the B4 platform. The Bollinger B4 Chassis Cab is an all-electric commercial truck featuring a unique Quad-Bend chassis design that offers capability, maneuverability, and safety. It boasts a 158-kWh battery pack, a 185-mile range, a 46-foot turning radius, and a payload capacity of 7,325 pounds.
The integration of Bollinger’s capabilities with Mullen’s EV ecosystem is expected to create synergies that drive innovation and market growth. Bollinger, established in 2015 and headquartered in Oak Park, Michigan, has been a majority-owned subsidiary of Mullen since September 2022.
Mullen Automotive, based in Southern California, has two U.S.-based vehicle plants and began commercial vehicle production in August 2023. Its commercial dealer network spans key markets across the United States, offering sales and service coverage.
This news is based on a press release statement from Mullen Automotive, Inc. and contains forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance, and actual results may differ materially. Investors should note that InvestingPro has identified 16 additional key investment insights for Mullen Automotive, available to subscribers along with comprehensive financial analysis and valuation metrics.
In other recent news, Mullen Automotive has announced a 1-for-100 reverse stock split to meet Nasdaq’s minimum bid price requirement. This move, approved by shareholders and the board, will reduce outstanding shares significantly, with trading on the Nasdaq continuing uninterrupted. Additionally, Mullen Automotive has reached a settlement with GEM Group regarding the transfer of Mishawaka assets, initiating a 55-day due diligence period. During this time, all collection activities are halted, aiming to resolve a long-standing legal issue. Bollinger Motors, a subsidiary of Mullen Automotive, delivered a Bollinger B4 electric truck to the LES Ecology Center in New York City, supporting their compost program with sustainable technology. Furthermore, Mullen Automotive secured a $1.4 million order from Cashflow on Wheels for 20 Mullen THREE vehicles, highlighting a strategic shift towards electric vehicles in logistics. This order underscores the growing demand for eco-friendly commercial vehicles, as noted by Mullen’s CEO, David Michery. These developments reflect Mullen Automotive’s ongoing efforts to expand its presence in the electric vehicle market.
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