Concerned investors on social media have raised the question of MULN stock going to $0.
Mullen Automotive (NASDAQ:MULN) stock ended the week at $0.14, down -9.20% on the day and down -17% for the week.
MULN stock tested $0.44 in January and again during the first week of February, but shares have been plunging ever since.
The automotive company has had a string of positive developments, with the latest MULN stock news confirming the delivery of the $200 million purchase order.
But despite these positive developments, Mullen Automotive shares have continued to tumble with concerns in the air of MULN stock going to $0.
Some warn Mullen Automotive stock may crash to zero as bankruptcy risks rise.
But Mullen reports that as of Feb. 28, 2023, the company has $87,400,009 of cash and cash equivalents, including restricted cash, and expects to receive an additional $110 million from firm commitments by June 1, 2023.
An official statement from Mullen Automotive published on 3/16 read:
“The Company believes the combination of cash on hand and expected firm cash commitments provides it with enough capital to execute on its business plan over the next 12 months.”
Will Mullen Automotive go bankrupt?
Doesn’t seem likely by that statement.
Will MULN Stock Go to Zero?
Mullen Automotive CEO David Michery has a plan to issue a reverse stock split should the company fail to meet Nasdaq’s $1 bid per share compliance.
Will this strategy save MULN stock from going to zero?
It’s very possible, but investors are look at CEO David Michery for answers.
MULN stock chopped at $0.14 majority of the day on Friday.
If the stock is able to find a strong support here, we may begin to see it move up again if buyers flood in.
However, market makers and hedge funds are still in control of where prices are headed — we’ve seen these institutions drive companies to $0 before, mainly through naked short selling.
Mullen Automotive Avoids Getting Delisted
The company avoided getting delisted after it failed to meet its $1 per share requirement on March 6, 2023.
Nasdaq approved a 180-day extension for Mullen Automotive to meet the minimum $1 bid price per share.
On Sept. 7, 2022, Nasdaq provided notice to the Company that, based on the previous 30 consecutive business days, the Company’s listed common stock no longer met the minimum $1 bid price per share requirement as set forth in Nasdaq Listing Rule.
The Company was provided 180 calendar days, or until March 6, 2023, to regain compliance.
If Mullen stock fails to trade above $1 for a minimum of 10 consecutive business days prior to Sept. 5, 2023, the Company will implement a reverse stock split to cure the Deficiency prior to the expiration of the additional 180-day compliance period.
“Consistent with my message to our shareholders, we will use our best efforts to regain compliance to meet Nasdaq’s requirement for a $1 minimum bid price,” said David Michery, CEO and chairman of Mullen Automotive.
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