Mullen Automotive (NASDAQ:MULN) has failed to close at $1 per share post the company’s new reverse stock split for the second consecutive day.
Shares of the EV company fell more than -19% on Thursday as the company announced the start of a $25 million buyback program.
Mullen said in a statement on Thursday that the Company is committed to taking all available measures to regain compliance with the NASDAQ minimum $1.00 bid price requirement.
On August 9, the company issued a 1-for-9 reverse stock split in efforts to remain compliant with Nasdaq’s $1 bid requirement.
“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.
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,” said Mullen in a statement.
“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.
“At this point, we’ve done the minimum reverse possible to try to regain compliance.
The rest will be in the retail, shareholders hands, if the stock stays above a buck or doesn’t.
At this point, we put our faith in the shareholders and retail traders.
All the good people need to rally against the individuals that are shorting the stock with malice intent, not to make money, but to cause delisting, that’s what they are doing.”
Positive Mullen Automotive Developments
Mullen Automotive is now introducing 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.
On Thursday, shares of the stock have fallen more than -19% putting pricing below Nasdaq’s $1 bid requirement for the second consecutive day.
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