Mullen Automotive (NASDAQ:MULN) announced a new $25 million stock buyback program on Thursday.
Shares rose up to $0.32 per share at the market open before falling back down to a quarter.
On Wednesday, MULN stock surged from $0.10 to $0.17, up more than +69% while continuing to rise after hours an additional +11%.
The company announced today that the Board of Directors has authorized a stock buyback program, pursuant to which the Company may, until Dec. 31, 2023, purchase up to $25 million in shares of its outstanding common stock.
The shares may be repurchased, from time to time, in the open market or in privately negotiated transactions depending upon market conditions and other factors, and in accordance with applicable regulations of the Securities and Exchange Commission (the “SEC”).
The authorization of the stock buyback program does not obligate the Company to purchase any shares and may be terminated or amended by the Board at any time prior to its expiration date.
“We are initiating this buyback program as an attractive opportunity to deploy capital and return value to our shareholders,” said David Michery, CEO and chairman of Mullen Automotive.
My guess on Wednesday’s runup was either shorts were beginning to close or the company initiated an unannounced buyback.
Shareholders have sat on the sidelines waiting for the CEO to finally fight back in some way after what many believe the company to be a target for illegal ‘naked short selling’.
The company also provided shareholders with a new update on its illegal naked shorting investigation.
Mullen Automotive Will Continue to Investigate Illegal Naked Shorting Activities
The company announced on Wednesday that it has retained Christian Attar, formally known as Christian Levine Law Group, and in partnership with Warshaw, Burstein, LLP, to combat naked short selling activities.
Based on reports Mullen has received from ShareIntel, the Company believes it may have been the target of a market manipulation scheme involving illegal naked short selling of its common stock and has decided to investigate and expose any potential wrongdoing.
According to various publicly disclosed sources, Christian Attar, formally known as Christine Levine Law Group, in partnership with Warshaw Burstein, LLP, have successfully prosecuted and collected millions of dollars in aggregate damages on behalf of their clients from broker-dealers, market-makers, hedge funds, and asset-based lenders who have engaged in such market manipulation schemes.
“Since our announcement on April 28, we have been actively investigating naked short selling and we now have enough intel to have the law firm actively investigate and, where justified, take action against any market manipulators using naked short selling, spoofing or other illegal acts,” stated David Michery, CEO and chairman of Mullen Automotive, Inc.
Naked shorting is the illegal practice of short selling shares that have not been affirmatively determined to exist.
The predatorial practice allows short sellers to short a stock and bypass the natural laws of supply and demand.
Wes Christian says ‘naked shorting’ is a big worldwide problem and that regulators aren’t as much in tune with it as they should be.
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