Mullen Automotive (NASDAQ:MULN) has entered a new partnership with Amerit Fleet Solutions, a service and warranty provider for vehicle fleet programs with over 1,800 service professionals.
The company announced today Amerit Fleet Solutions as the provider for national service and warranty work, supporting Mullen’s commercial vehicle lineup, including the Mullen CAMPUS – EV Cargo Van, the Mullen ONE – Class 1 EV Van and the Mullen THREE – Class 3 EV Cab Chassis Truck programs.
Amerit will provide national fleet service and warranty repair work for the Mullen CAMPUS EV Van, the Mullen ONE, which is a Class 1 EV Cargo Van, and the Mullen THREE, which is a Class 3 EV Cab Chassis Truck.
Prior to program launch, Amerit will be working closely with the Mullen commercial product team and vehicle technicians in Troy, Michigan, and Tunica, Mississippi, to train on Mullen’s commercial vehicles, establishing servicing protocols and requirements.
“Amerit has over 1,800 highly trained vehicle service technicians across the U.S., and we have built our business and reputation on providing stellar servicing across many different fleet and commercial vehicle programs,” said Dan Williams, CEO of Amerit.
“We look forward to providing Mullen and their fleet customers with the same high level of service and commitment.”
“We are confident that Amerit is a great fit and provider for servicing our commercial vehicles,” said John Schwegman, chief commercial officer of Mullen Automotive.
“Every strategic initiative has been put in place to ensure the viability for our Class 1 and Class 3, from sales, service, warranty and overall vehicle support.
Amerit is a well-established national provider of fleet service and warranty work,” said David Michery, CEO and chairman of Mullen Automotive.
MULN stock is down nearly -7% on Tuesday.
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Mullen Stock Joins the Short Sell Restriction List
Mullen Automotive stock was added to the short sell restriction list last Friday.
On Friday, MULN stock tripped the SEC’s short sale circuit breaker making the SSR list.
“This rule is designed to restrict short selling from further driving down the price of a stock that has dropped more than 10 percent in one day compared to the closing price on the previous day,” says the SEC.
The rule is only triggered once the shares of a company drops by 10% within a day. The ten percent starts from the previous day’s close.
Short sell restriction remains for the remainder of the day and in many cases, the rule can extend to the next day.
As of April 30, Mullen says it possessed $116.1 million of cash available for operations, but the company continues to face risk of delisting or issuing another reverse stock split.
The company has traded above its $1 minimum bid price requirement for 10 consecutive days after enacting a reverse stock split, but shares have now fallen below the compliance requirement.
MULN stock is currently trading below $0.88 — if it continues to trade below $1, the company will have to undergo another split.
In late April the company announced it was looking into investigating the possibility of manipulative trading.
“Mullen Automotive announced today that it is taking certain affirmative steps in light of the extraordinary trading volume and evidence of unusually high levels of failure to deliver on short sales as reported to the U.S. Securities and Exchange Commission.
These steps include retaining outside counsel, which is working with Shareholder Intelligence Services LLC (“ShareIntel”) to undertake a comprehensive analysis of data derived from broker-dealers, clearing firms and other sources to provide actionable intelligence on potential market manipulation and illegal short selling.
ShareIntel offers unique access and insight into shareholder position movements and the ability to proactively track equity flows and identify suspicious, aberrant and/or unusual trading activity.
As a fiduciary to its shareholders, the Company will do everything in its power to address any evidence of improper trading in Mullen securities.”
Other MULN Stock News
The new Mullen Automotive (NASDAQ:MULN) $45m funding has been delayed for June 12.
Mullen Automotive had previously agreed to issue Series D preferred stock and warrants to Esousa Holdings and Acuitas Capital, in exchange for $90 million, part of a $110 million deal.
The Series D preferred stock is convertible into common stock.
The warrants are equal to 185% of the Series D preferred stock purchased, originally 110%.
$45 million of that $90 million was received on April 17.
The second payment was scheduled to be received on May 15 but has been delayed for June 12.
Mullen did not provide a reason for the delay, other than that Mullen and each of the buyers in the SPA had agreed to delay the issuance of Series D preferred stock and warrants until Mullen receives the $45 million, per IP.
A note in the company’s last earnings report Mullen detailed it had cash and cash equivalents of $60.3 million as of March 31.
That was up from $54.08 million a year ago.
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