Is a Mullen Automotive (NASDAQ:MULN) reverse stock split underway?
Many shareholders are anticipating MULN stock to undergo a reverse stock split, similar to what AMC Entertainment is proposing to its shareholders.
What is a reverse stock split anyway?
And how will this affect shareholders portfolios?
Let’s use AMC’s 1-for-10 reverse stock split as an example.
If an investor holds 100 shares, after a 1-for-10 reverse split they will hold 10 shares but the price of the stock will 10x.
In AMC’s case, if a reverse stock split occurs today around approximately $6.58, then the share price will go up to $65.80.
Similarly, if a shareholder holds 1,000 shares, after a reverse stock split they will hold 100 shares.
Why would Mullen Automotive issue a reverse stock split?
The company has until March 6th to meet the Nasdaq minimum bid requirement of $1 per share.
If the company is unable to meet the requirement, it will enter a grace period before getting delisted.
the company said in a statement that it intends to seek an extension from Nasdaq to meet the $1-per-share threshold.
“If such extension is granted, compliance of the minimum $1 stock share threshold requirement may be extended for a further 180 days until approximately September 6,” the company said.
Will Mullen Automotive Issue a Reverse Stock Split?
The company has no plans at the current time to effect a reverse split. The Company has until March 6, 2023 to meet the Nasdaq minimum bid requirement of $1.00, said the Mullen Press Release as of January 25, 2023.
However, the company also stated the following:
“If the company still falls short of the minimum bid requirement, it will effect a reverse stock split at that time to maintain its Nasdaq listing compliance.”
- If MULN stock is unable to meet $1 per share by March 6th, an extension will be requested.
- If an extension is APPROVED for a further 180 days until September 6th and shares have failed to reach $1, only then…
- Will MULN issue a reverse stock split to maintain the Nasdaq listing compliance.
At current prices, Mullen Automotive would need to issue a 1-for-5 reverse stock split, putting MULN shares at $1.05; $0.21 per share today.
This means shareholders with 100 shares would then own 20 shares and shareholders with 1,000 shares would own 200 shares.
But I’d love to hear your thoughts on this.
Leave a comment down below.
Market News Published Daily
For stock market, business news and updates, join the newsletter to receive weekly market news and notifications straight to your inbox.
Franknez.com is the media site that keeps retail investors informed.
- Gain access to EXCLUSIVE FrankNez articles you won’t find here.
- Become part of a private and safe Discord community, just for retail investors.
- Get drawn at the end of the year for holiday giveaways.
Recommended For You ✨
- The US Treasury Direct is Now Freezing Customer Accounts
- Wells Fargo is Now Freezing Bank Accounts in New Scandal
- Chase Customers Now Unable to Access Money Through ATMs
- Bank of America is Freezing Accounts in New Scandal
- A US Bank is Now Denying Customers Access to Money
- Banks Are Now Closing Thousands of Accounts Daily
My New Book is Out Now! Use Code: THENEZ