Mullen Automotive (NASDAQ:MULN) resignations are rising, not a good sign as the company’s share price continues to tumble.
The company announced that Chief Accounting Officer (CAO) Kerri Sandler resigned on March 6th.
Vice President of Operations Chester Bragado became the new CAO immediately.
With over 20 years of experience, Bragado previously served as Mullen’s executive vice president of operations.
Before that, he held financial, auditing and accounting roles at companies like Sambazon and Loop Media.
Bragado has also served as an external auditor for PriceWaterHouseCoopers (PwC).
“There are no arrangements or understandings between Mr. Bragado and any other person pursuant to which he was appointed to serve as Chief Accounting Officer and Mr. Bragado does not have a direct or indirect material interest in any ‘related party’ transaction required to be disclosed pursuant to Item 404(a) of Regulation S-K,” said Mullen in a Form 8-K.
“There are no family relationships between Mr. Bragado and any director or executive officer of the Company.”
Mullen Automotive News: Auditor Resigns
This announcement comes after Mullen’s auditor resigned this month.
Last week, Daszkal Bolton disclosed that it would resign immediately following a merger with CohnReznick.
Daszkal had been the company’s auditor since 2020.
Mullen did not provide any other reason for the resignation besides the merger.
Meanwhile, Mullen noted that it had engaged RBSM as its new public accountant.
Mullen Automotive has had many positive developments this year but its resignations are raising concerns.
The Brea, California-based company reported a net loss before accrued preferred dividends and non-controlling interest of $378.46 million for the three months ended Dec. 31.
MULN is currently down more than -57% this year-to-date.
7 Analysts had given the company a price target of $24.15 per share earlier this year but only 1 analyst is now giving the company a target of $23.
MULN stock is trading at $0.13 at the moment.
Hitting $1 per share is one of the biggest concerns for shareholders right now.
Mullen Automotive Avoids Getting Delisted
Mullen Automotive 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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