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BREA, Calif. - Mullen Automotive, Inc. (NASDAQ: MULN), an electric vehicle manufacturer with a current market capitalization of $3.41 million, announced Monday that it has reached a settlement agreement with GEM Yield Bahamas Limited and GEM Global Yield LLC SCS, collectively known as GEM Group. The settlement pertains to the transfer of Mullen’s Mishawaka assets to GEM in satisfaction of a judgement. As part of the agreement, GEM will conduct a 55-day due diligence period, which may be extended, to assess the transfer of assets. According to InvestingPro data, Mullen currently operates with a significant debt burden and a concerning current ratio of 0.24, indicating potential challenges in meeting short-term obligations.
During this due diligence period, all collection activities have been halted. Mullen’s CEO and chairman, David Michery, expressed relief at resolving the four-year litigation and optimism for the company’s future growth in 2025 and beyond. However, InvestingPro analysis reveals the company is quickly burning through cash, with revenue of just $4.01 million in the last twelve months. Subscribers can access 18 additional key insights about Mullen’s financial health and market position.
The company is also focusing on expanding its manufacturing capabilities in Tunica, Mississippi, to support the increasing demand for its diverse product lines. Mullen Automotive operates two vehicle plants in the United States and has begun commercial vehicle production in Tunica. The Mullen ONE and Mullen THREE electric vehicles have received certification from the California Air Resource Board and the EPA and are currently on the market.
Mullen’s commercial dealer network includes seven dealers across various regions of the U.S. In addition, the company’s majority-owned subsidiary, Bollinger Motors, has launched production of its B4 electric truck and established a significant dealer and service network.
This announcement comes with the usual caveats of forward-looking statements, which involve risks and uncertainties that could cause actual results to differ from those projected. These risks include the outcome of GEM’s due diligence and the potential implementation of the settlement, as well as broader financial and market challenges. The company’s overall financial health score of 0.53 is rated as "WEAK" by InvestingPro, suggesting significant challenges ahead.
The information for this report is based on a press release statement from Mullen Automotive, Inc.
In other recent news, Mullen Automotive has announced a significant order from Cashflow on Wheels for 20 all-electric Mullen THREE vehicles, valued at approximately $1.4 million. This strategic move by Cashflow on Wheels aims to transition their fleet to electric vehicles, enhancing efficiency and sustainability. Additionally, Mullen has entered into a Settlement Agreement with GEM Yield Bahamas Limited and GEM Global Yield LLC SCS to potentially resolve a judgment through the transfer of Mishawaka assets. In another development, Bollinger Motors, a Mullen subsidiary, delivered an all-electric Bollinger B4 truck to the LES Ecology Center in New York City for its compost program. The Bollinger B4 truck is also being converted into mobile EV chargers by EnviroCharge, a service-disabled veteran-owned company, to support EV charging infrastructure. Furthermore, Mullen Automotive has sold its all-electric Mullen ONE Class 1 cargo van to Global Expert Shipping, marking the first in a series of planned orders. These recent developments highlight Mullen’s expanding presence in the electric vehicle market and its commitment to sustainable transportation solutions.
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