Mullen Automotive (NASDAQ:MULN) has announced a new 1 for 9 reverse stock split alongside the beginning of a $25 million stock buyback program.
“We believe the Company is highly undervalued and the stock buyback program represents a compelling use of our capital, reflecting confidence in our business,” said David Michery, CEO and chairman of Mullen Automotive.
On Monday, Mullen revealed the shareholder meeting results in a new SEC 8-K filing, which go over its dilutive proposals.
Two of the biggest dilutive proposals were passed according to Mullen’s 8-K filing:
- The issuance of an additional 52 million shares.
- And another Reverse Stock Split.
Mullen received 221,098,224 ‘votes for’ a reverse stock split, and 103,280,513 ‘votes against’ it, with 1,415,758 abstentions.
“NASDAQ Listing Rule 5810(c)(3)(H) states that, “If a Company fails to meet the [Minimum Bid Price requirement], compliance is generally achieved by meeting the requirement for a minimum of ten consecutive business days.
However, Staff may, in its discretion, require a Company to [maintain a bid price of at least $1.00 per share] for a period in excess of ten consecutive business days, but generally no more than 20 consecutive business days, before determining that the Company has demonstrated an ability to maintain long-term compliance.
In determining whether to require a Company to meet the [minimum $1.00 bid price standard] beyond ten business days, Staff will consider the following four factors: (i) margin of compliance (the amount by which the [bid price is above the $1.00 minimum standard]); (ii) trading volume (a lack of trading volume may indicate a lack of bona fide market interest in the security at the posted bid price); (iii) the Market Maker montage (the number of Market Makers quoting at or above $1.00 and the size of their quotes); and, (iv) the trend of the stock price (is it up or down).”
MULN stock is currently trading at $0.11 which means that with a 1 for 9 reverse stock split, the new price will trade at exactly $1 per share.
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Latest MULN Stock News
Mullen Automotive (NASDAQ:MULN) announced on Thursday that it has now begun production this month for its Class 1 and Class 3 EVs.
“August is a busy month at our Tunica, MS Assembly Plant! Our Mullen THREE – Class 3 EV Cab FWD production in action ⚡”, said the company on Twitter.
The company announced in mid-July the transfer of Class 1 EV cargo van vehicles between its plants in Mishawaka, Indiana, and Tunica, Mississippi, for final assembly pursuant to customer orders.
Mullen said that over 350 of its Class 1 EVs would be transferred to Tunica for final assembly.
“Our Tunica plant is in final stages for the production start and deliveries of class 1 and class 3 vehicles to customers between August and December 2023,” stated John Taylor, senior vice president of global manufacturing for Mullen Automotive.
“Exciting times as we are getting very close to delivering vehicles to awaiting customers, beginning in August 2023, which allows us to recognize continued revenue growth over the last six months of 2023,” said David Michery, CEO and chairman of Mullen Automotive.
Critics of the EV company have requested proof of manufacturing and Mullen has now published the following video of its assembly line in Mishawaka, IN.
Also Read: Mullen Has Now Been Investigating Naked Short Selling Since April
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