Mullen settles with GEM over asset transfer

Mullen Automotive Inc. (NASDAQ:MULN) has entered into a Settlement Agreement and Release with investment entities GEM Yield Bahamas Limited and GEM Global Yield LLC SCS, collectively known as GEM, according to a recent 8-K filing with the Securities and Exchange Commission. The agreement comes at a crucial time for Mullen, which according to InvestingPro data, operates with a significant debt burden and has been rapidly burning through cash, with a concerning current ratio of 0.24.

The agreement, dated May 9, 2025, stipulates that GEM will conduct a 55-day due diligence period, which may be extended, to assess the transfer of Mishawaka assets from Mullen as complete satisfaction of a judgment. During this period, all collection activities related to the judgment are suspended.

This development comes as Mullen Automotive, a company incorporated in Delaware with headquarters in Brea, California, seeks to resolve its obligations under the judgment. The terms of the settlement provide a potential path to satisfying these obligations through the transfer of assets rather than financial repayment. InvestingPro analysis reveals the company’s challenging financial position, with negative EBITDA of -$242.28 million in the last twelve months and short-term obligations exceeding liquid assets.

Mullen, which is listed on the Nasdaq Capital Market under the ticker symbol MULN, is known for its involvement in the motor vehicles and passenger car bodies industry. The stock has faced significant pressure, trading near its 52-week low of $0.16, with InvestingPro data showing a -40.21% decline in just the past week. InvestingPro subscribers have access to 18 additional key insights about Mullen’s financial health and market position.

Investors and stakeholders in Mullen Automotive may keep a close watch on the outcome of GEM’s due diligence process, as it could significantly impact the company’s financial and operational future. The company’s overall financial health score is rated as WEAK by InvestingPro analysts, with particularly concerning metrics in profitability and cash flow management.

The filing indicates that Mullen is not an emerging growth company and is subject to the reporting requirements of the Securities Exchange Act of 1934. The report was signed by David Michery, the Chief Executive Officer of Mullen Automotive Inc., and filed on May 13, 2025.

This information is based on a press release statement.

In other recent news, Mullen Automotive has announced several key developments. The company received a substantial order valued at approximately $1.4 million from Cashflow on Wheels for 20 Mullen THREE electric vehicles, marking a strategic shift toward electric vehicles for the logistics company. Furthermore, Mullen Automotive’s subsidiary, Bollinger Motors, delivered its first Bollinger B4 truck to EnviroCharge, which will convert it into a mobile charging unit. This initiative aims to bolster EV charging infrastructure, especially in California. Additionally, Mullen Automotive has sold its Mullen ONE Class 1 cargo van to Global Expert Shipping, marking the beginning of a series of orders to support sustainable logistics solutions. The company has also partnered with Enpower Greentech Inc. to produce SWIFT series semi-solid-state batteries, with plans to start production at Mullen’s Fullerton, California facility in 2026. This collaboration is expected to enhance battery performance and cost-effectiveness for various commercial applications. These recent developments highlight Mullen Automotive’s continued expansion in the electric vehicle market and its commitment to sustainability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.