Mullen Automotive (NASDAQ:MULN) stock closed on Monday at $0.32.
The last time Mullen Automotive shares traded at $1 was in July of 2022.
The company said it has until March 6 to meet the Nasdaq minimum bid requirement of $1.
If shares haven’t reached $1 by then, the company said in a statement that it intends to seek an extension from Nasdaq to meet the $1-per-share threshold.
This means that if the company wants to keep its company listed in the market, it will do everything in its power to meet that $1-per-share threshold.
However, Mullen Automotive may also request an extension if it does not meet the $1 requirement by March 6th.
“If such extension is granted, compliance of the minimum $1 stock share threshold requirement may be extended for a further 180 days until approximately September 6,” the company said.
“If the company still falls short of the minimum bid requirement, it will effect a reverse stock split at that time to maintain its Nasdaq listing compliance.”
For shareholders, a reverse stock split would decrease the number of shares they own but increase the share price without changing the overall value of their holdings.
AMC Entertainment shareholders will get to vote on a 1-for-10 reverse stock split this year.
In MULN’s case, the company would have to issue a 1-for-4 reverse stock split to meet Nasdaq’s listing requirements.
Latest MULN Stock News
The developments follow Mullen’s acquisition of bankrupt electric vehicle manufacturer Electric Last Mile Solutions last year for $55 million and the assumption of $37 million in liabilities.
The purchase included Electric Last Mile Solutions’ Mishawaka, Indiana, manufacturing facility.
Also last year, Mullen bought a 60% stake in electric truck startup Bollinger Motors for $148 million in cash and stock.
Mullen Automotive, which went public in November 2021, also has a manufacturing facility in Tunica County, Mississippi.
Mullen said delivery of its Mullen Five, its first electric crossover, is set for 2024 and will utilize facial recognition technology.
That vehicle, Mullen said, will have a range of 325 miles, will travel up to 155 miles per hour, and will accelerate from zero to 60 miles per hour in 3.2 seconds.
Should Tesla worry?
I’d love to hear your thoughts in the comment section.
Will $1 Trigger a Short Squeeze?
“Mullen Automotive is set up for a short squeeze that may not begin if the company cannot issue some favorable news in the next few weeks,” said MarketBeat analysts.
Experts are saying Mullen Automotive’s high trading volume and current price action all point to a short squeeze.
CNN Money is predicting MULN stock to make gains upwards of +7,000% this year from its $0.32 previous major level.
Stock analysts are giving Mullen Automotive a low of $23.23, a mid of $23.46, and a high of $24.15 per share.
The analyst consensus is a strong ‘buy’ for Mullen Automotive stock.
Whether the $1 level triggers a short squeeze or not may still attract investors to eventually carry momentum beyond $1 per share.
If the company is able to bring forth positive and profitable news, this will only further enhance bullish sentiment in MULN.
But I’m curious to hear your thoughts on this.
Related: Will MULN Shares Keep Surging?
Additional source(s): The Business Journals
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What about the argument that these billion dollar hedge funds can keep paying out forever?