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BREA, Calif. - Mullen Automotive Inc. (NASDAQ: MULN), an electric vehicle manufacturer currently trading at $0.15 and carrying a market capitalization of $8.23 million, announced today that it will implement a 1-for-100 reverse stock split of its common stock. The action, set to take effect on June 2, 2025, aims to comply with Nasdaq’s minimum bid price requirement. According to InvestingPro data, the stock is trading near its 52-week low amid significant financial challenges.
The reverse stock split was authorized by Mullen’s stockholders at a special meeting on May 21, 2025, and subsequently approved by the board of directors. This strategic move will reduce the number of outstanding shares from approximately 80 million to around 800 thousand. As a result, every 100 shares of Mullen’s common stock will be combined into one share. InvestingPro analysis reveals the company’s challenging financial position, with a weak financial health score of 0.54 and negative EBITDA of $229.35 million in the last twelve months.
Trading on the Nasdaq Capital Market under the ticker MULN will continue without interruption, with the split-adjusted shares beginning to trade on June 2, 2025. The company’s common stock will also receive a new CUSIP number, 62526P802, following the reverse stock split.
The reverse stock split is uniform across all shareholders and will not alter the percentage ownership interests in the company, except for minor adjustments due to the rounding up of fractional shares. Adjustments will also be made to outstanding equity awards, warrants, convertible notes, and the per share conversion price of preferred stock, in accordance with their respective terms.
Mullen has stated that the reverse stock split is primarily aimed at ensuring compliance with Nasdaq’s listing standards, specifically the $1.00 minimum bid price requirement. However, there is no guarantee that this objective will be achieved.
The company’s transfer agent, Continental Stock Transfer & Trust Company, will act as the exchange agent for the reverse stock split. Shareholders holding shares electronically in book-entry form or through a broker, bank, trust, or other nominee need not take any action, as their holdings will be automatically adjusted to reflect the reverse stock split.
Mullen Automotive, based in Southern California, has been expanding its presence in the electric vehicle market with two vehicle plants in the United States and a range of commercial electric vehicles that are certified and available for sale. The company also acquired a majority stake in Bollinger Motors in September 2022, further expanding its product line and dealer network. Despite operational challenges, the company has achieved remarkable revenue growth of over 2,000% in the last twelve months. For deeper insights into Mullen’s financial health and growth prospects, including 15 additional exclusive ProTips, visit InvestingPro.
This announcement is based on a press release statement from Mullen Automotive Inc.
In other recent news, Mullen Automotive has reached a settlement agreement with GEM Group concerning the transfer of its Mishawaka assets. This agreement allows GEM a 55-day due diligence period to assess the asset transfer, during which all collection activities are paused. Additionally, Mullen Automotive announced a significant $1.4 million order from Cashflow on Wheels for 20 Mullen THREE electric vehicles, marking a strategic shift for the logistics company towards electric vehicles. Meanwhile, Bollinger Motors, a subsidiary of Mullen Automotive, delivered its first Bollinger B4 truck to EnviroCharge, which will be converted into a mobile EV charging unit. This initiative aims to expand EV charging infrastructure, especially in California. Bollinger Motors also delivered a Bollinger B4 truck to the LES Ecology Center in New York City for its compost program, highlighting its commitment to sustainability. The company has been expanding its commercial dealer network across the U.S., with Bollinger B4 trucks benefiting from federal and state incentives. Mullen Automotive continues to focus on its manufacturing capabilities in Mississippi to support increasing demand for its electric vehicles.
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