Mullen Automotive (NASDAQ:MULN) has now been saved from delisting by Nasdaq according to the company’s latest announcement.
Nasdaq Hearings Panel has granted Mullen’s request to continue its listing on The Nasdaq Capital Market, subject to the following conditions:
- on or before Jan. 22, 2024, the Company must demonstrate compliance with Listing Rule 5550(a)(2), by maintaining a closing bid price of $1 per share for 20 consecutive trading sessions; and
- on or before March 8, 2024, the Company must demonstrate compliance with Listing Rule 5620(a) by holding an annual shareholder meeting.
“While the Company held an annual meeting on Aug. 3, 2023, and the proposals that were approved at such meeting including the election of directors are, and remain, valid, the Nasdaq Listing Qualifications Department determined that the meeting did not satisfy Listing Rule 5620(a) since the Company did not afford stockholders the opportunity to discuss Company affairs with management at the meeting.
In order to demonstrate compliance, the Company plans to hold a combined 2023 and 2024 annual meeting,” the press release stated.
“I am pleased Nasdaq gave the Company this opportunity to continue implementing its business plan.
We are diligently working to regain and maintain compliance with Nasdaq’s continued listing requirements,” said David Michery, CEO and chairman of Mullen Automotive.
Shares of the company rose more than +22% on Thursday to $0.32 following the announcement.
However, shares are down more than -38% in the past month, and more than -99% this year-to-date.
Mullen Automotive recently provided an update to shareholders on its latest short selling lawsuit against TD Ameritrade, Charles Schwab, and others.
The company alleges that these broker dealers engaged in a scheme to manipulate the share price of the Company’s securities and now seeks compensatory damages.
Other Market News Today
Hedge funds will now disclose which companies they sell short to the Securities and Exchange Commission (SEC), reports the WSJ.
“Traders will get a broader look at which public companies are being targeted by short sellers under rules the Securities and Exchange Commission adopted Friday as part of its response to the 2021 GameStop trading frenzy.
In a short sale, a trader bets against a stock by borrowing shares and then selling them in hopes the shares’ price will decline before the trader must return them to the lender.
In the case of GameStop, individual investors sought to create a “short squeeze” by forcing short sellers to buy stock to cover their positions, boosting share prices.”
SEC commissioners voted 3-2 on Friday to adopt two rules—one aimed at large short sellers, and the other at lenders of securities.
“These are two opaque areas of the market, short selling and securities lending,” Gensler said.
The SEC Chair says that the changes should promote greater transparency and efficiency in the market.
Republican SEC Commissioner Mark Uyeda said the changes could discourage short selling and, therefore, curb the market’s ability to appropriately price assets.
“The final rule places burdensome and costly reporting requirements on investment managers instead of adjusting, consolidating, and leveraging data already collected,” said Bryan Corbett, president of the Managed Funds Association, a group of hedge funds.
Ken Griffin’s Citadel Securities is now suing the SEC over its new market transparency rules meant to keep institutions under tighter surveillance.
The hedge fund was recently fined $7 million for marking short sales as long for five years.
“Compliance with the order marking requirements of Reg SHO is a key component of regulatory efforts to curtail abusive market practices, including ‘naked’ short selling,” says Mark Cave, Associate Director of the SEC’s Division of Enforcement.
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