Mullen Automotive (NASDAQ:MULN) has now revealed the shareholder meeting results in a new SEC 8-K filing, which go over its dilutive proposals.
“On August 3, 2023, at the 2023 Annual Meeting of Stockholders of Mullen Automotive Inc., the Company’s stockholders approved an amendment to the Company’s 2022 Equity Incentive Plan.
The Amendment increased the maximum aggregate number of shares of common stock and stock equivalents available for the grant of awards under the 2022 Plan by an additional 52,000,000 shares (not subject to adjustment for any decrease or increase in the number shares of common stock resulting from a stock spilt, reverse stock split, recapitalization, combination, reclassification, the payment of a stock dividend on the common stock or any other decrease in the number of such shares of common stock effected without receipt of consideration by the Company).”
Two of the biggest dilutive proposals were passed according to Mullen’s 8-K filing:
- The issuance of an additional 52 million shares.
- And another Reverse Stock Split.
Mullen received 221,098,224 ‘votes for’ a reverse stock split, and 103,280,513 ‘votes against’ it, with 1,415,758 abstentions.
While the ratio for the reverse stock split has not yet been confirmed, the ratio sits between a 1-for-2 or 1-for-100 stock split.
The company stock is currently trading at $0.11 which means a 1-for-10 reverse stock split would put the share price at $1.10, meeting Nasdaq’s dollar bid requirement.
However, Mullen Automotive only lasted 10-consecutive days above $1 when it issued its 1-for-25 split in May which means the company will need to issue a higher ratio to buy the company more time.
Unfortunately for shareholders, this means their multiplying factor, being the number of shares they hold, will only decrease.
Does Mullen Automotive have what it takes to eliminate the Wall Street short thesis that keeps plunging its share price back down to pennies?
Here are the latest developments happening in MULN today.
Also Read: Mullen Has Now Been Investigating Naked Short Selling Since April
Mullen Has Now Begun Production This Month
Mullen Automotive announced on Thursday that it has now begun production this month for its Class 1 and Class 3 EVs.
“August is a busy month at our Tunica, MS Assembly Plant! Our Mullen THREE – Class 3 EV Cab FWD production in action ⚡”, said the company on Twitter.
The company announced in mid-July the transfer of Class 1 EV cargo van vehicles between its plants in Mishawaka, Indiana, and Tunica, Mississippi, for final assembly pursuant to customer orders.
Mullen said that over 350 of its Class 1 EVs would be transferred to Tunica for final assembly.
“Our Tunica plant is in final stages for the production start and deliveries of class 1 and class 3 vehicles to customers between August and December 2023,” stated John Taylor, senior vice president of global manufacturing for Mullen Automotive.
“Exciting times as we are getting very close to delivering vehicles to awaiting customers, beginning in August 2023, which allows us to recognize continued revenue growth over the last six months of 2023,” said David Michery, CEO and chairman of Mullen Automotive.
Critics of the EV company have requested proof of manufacturing and Mullen has now published the following video of its assembly line in Mishawaka, IN.
Is this enough to change Wall Street’s thesis on the EV company?
Or has Mullen Automotive simply become a bigger target for Wall Street naked short sellers?
I’d love to know what you think – leave your thoughts in the comment section of the blog down below.
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Actually, $MULN traded 12 days above a dollar in May, but that wasn’t enough for Nasdaq, apparently. Now that the stock is trading under 11¢, the 1-for-9 isn’t going to get it done, either. But they are limited to LESS THAN 1-for-250 in a year to meet listing requirements, I think.
At this point it might be better to suspend the second split and see if they can get another extension.
This is very encouraging news,I bought more shares @ ,1121 to have 18,000 shares. After the one-for- nine reverse split I’ll have 2,000 shares. Let’s see what happens in the next couple of months going into Q4.
If you care about tax lots it will still be a mess!
Leave your thoughts below!