Mullen Automotive (NASDAQ:MULN) announced on Thursday the start of its new $25 million stock buyback program, which first made headlines in early July.
David Michery, CEO and chairman of Mullen also purchased 102,040 shares in the open market on Wednesday, August 16, 2023, at a price of $0.9842 per share.
“The Company is committed to taking all available measures to regain compliance with the NASDAQ minimum $1.00 bid price requirement,” reads the press release.
The Company was noticed by Nasdaq on March 7, 2023, which stated in part that “If compliance cannot be demonstrated by September 5, 2023, Staff will provide written notification that the Company’s securities will be delisted.
At that time, the Company may appeal Staff’s determination to a Hearings Panel.”
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: (1) margin of compliance (the amount by which the bid price is above the $1.00 minimum standard); (2) trading volume (a lack of trading volume may indicate a lack of bona fide market interest in the security at the posted bid price); (3) the Market Maker montage (the number of Market Makers quoting at or above $1.00 and the size of their quotes); and, (4) the trend of the stock price (is it up or down).”
“We believe that our stock is undervalued.
The Company has begun production of our Class 3 EV with deliveries pending to customers and a strong balance sheet allowing us to execute on our business plan,” said David Michery, CEO and chairman of Mullen.
Also Read: Mullen CEO Speaks on New Reverse Split and Short Sellers
Latest Mullen Automotive News Today
On Wednesday, Mullen Automotive introduced the new Mullen FIVE RS, an EV sports crossover which will be featured at this month’s “Strikingly Different” EV Tour on August 20, in Austin, Texas.
The FIVE RS is equipped with 800-volt architecture, all-wheel drive, a two-speed gearbox, and over 1,100 horsepower!
According to the company, the Mullen FIVE RS is an ultra-high-performance EV featuring a top speed of 200 mph and acceleration from 0-60 mph in under 2 seconds.
Equipped with 800-volt architecture, all-wheel drive, a two-speed gearbox, and over 1,100 horsepower, the vehicle has a performance-oriented suspension and massive 325/35R21 front and rear tires.
Specifically developed brakes provide quick stopping for the RS, which is fully race prepped to allow occupants to experience max-performance potential.
“I want to encourage shareholders to continue sharing thoughts and opinions with Mullen, and remember we are working together to achieve great things, including pushing the boundaries of EV performance and electrifying the world,” said David Michery, CEO and chairman of Mullen Automotive.
Due to the high-powered capabilities of the FIVE RS, consumers will not be allowed to test drive the vehicle directly.
Instead, Mullen will offer consumers the opportunity to ride in the Mullen FIVE RS alongside a professional race car driver, providing an up-close and personal experience in one of the fastest vehicles available globally.
Mullen will offer “front row” FIVE reservation holders the first chance to experience the Mullen FIVE RS in person on the “Strikingly Different” U.S. test drive tour.
More details on the upcoming tour can be accessed here.
MULN stock is currently down -2% on Thursday as it battles to maintain its head above Nasdaq waters.
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