Mullen Automotive (NASDAQ:MULN) is introducing new dilution proposals for later this year in its latest Annual Shareholder Meeting.
MULN stock is down more than -15% on Wednesday and more than -96% this year-to-date.
The company stock has had trouble catching a breather all year despite several positive developments from Mullen Automotive.
Critics claim the biggest reason for sliding share prices is due to the company’s massive cash burn — Mullen Automotive is not a profitable company yet.
Investing in Mullen Automotive today is more like crowdsourcing the company to grow — an ambitious yet loyal attempt to see the company succeed.
Mullen survived delisting in May when the company issued a 1-for-25 reverse stock split.
However, share prices have fallen below Nasdaq’s $1 bid requirement again putting the company stock at risk; the company only lasted 10-consecutive days above $1.
Some of the new proposals Mullen Automotive is bringing to the table include increasing the number of common stock, issuing another reverse stock split, gifting the CEO more shares as well as executive compensation approval, and issuing exercisable warrants worth $30 million in common stock.
The annual meeting is to be held on Thursday, August 3rd, 2023.
Investors will be able to attend a virtual meeting at 9:30am PDT.
MULN Dilution Proposals
Below are just a few of the new proposals for this year’s annual meeting to be held on August:
- Proposal 2 — To approve amendments to Company’s 2022 Equity Incentive Stock Plan to increase the number of shares of Common Stock authorized for issuance under the 2022 Plan by 52,000,000 shares.
- Proposal 3 — To approve the amendment of the Company’s second Amended and Restated Certificate of Incorporation to effect a reverse stock split of the Company’s outstanding common stock at an exchange ratio between 1-for-2 to 1-for-10 as determined by the Company’s Board of Directors.
- Proposal 5 — To approve, a non-binding advisory basis, the compensation of our named executive officers.
- Proposal 7 — To approve, for purposes of complying with Nasdaq Lising Rule 5635(c), of the issuance of shares of Common Stock to our Chief Executive Officer pursuant to a Performance Stock Award Agreement.
- Proposal 8 — To approve, for purposes of complying with Nasdaq Listing Rule 5635(d), amendments to a securities purchase agreement to provide for the issuance of $30 million in additional shares of Common Stock and warrants exercisable into shares of Common Stock, and any future adjustments of the exercise price of the warrants.
Investors will have to make a tough decision to either cut their losses or continue to support the company, no matter the cost.
Statement from Mullen CEO on Falling Share Prices
“I’m going to let my actions speak louder than words, I’m done speaking, I’m gonna deliver.
And I’m going to let the stock go where the stock’s gonna go. It’s gonna be based on performance, how we perform as a company, as a team.
No one person can win a championship by himself, it’s a team effort. You surround yourself with strong people.
You go out and do a good job and you do your best. I like our chances.
I think that Mullen has all the right pieces in place.
Not just our vehicle lineup from a commercial perspective, but the factories that we have, the partnerships that we have, the people that we’ve hired.
We are now moving in a direction to be a real force to reckon with in this space.
We’re not a company that is going out of business unlike everything I read and see out there.
This is a company that’s the complete opposite, said CEO David Michery in his latest interview.
How will you vote in the latest Mullen Shareholder Meeting?
Leave your thoughts below.
Also Read: Mullen Announces New and Improved EV Truck Development
Market News Published Daily 📰
Join the newsletter ⬅️ to receive daily stock market news, business news and updates straight to your inbox; more than 10,000 readers have joined!
THANK YOU to all of our blog sponsors, this year we’ve been able to increase our email sends and signup slots as well as introduce push notifications.
Franknez.com is the media site that keeps retail investors informed.
You can also follow Frank Nez on Twitter, Instagram, Facebook, or LinkedIn for daily news and updates on your favorite stories.
Become a Sponsor for only $1/mo.
- 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 ✨
About The Author
Leave your thoughts below.
This company just buys and imports Wuling Chinese vehicles, rebrands and sells. this company is garbage investment and will never squeeze.
https://www.alibaba.com/product-detail/Cheap-China-Large-Capacity-Van-Wuling_1600863125991.html?spm=a2700.galleryofferlist.normal_offer.d_title.14e53885eAQhGf