Will Mullen’s New Developments Save the Company From Delisting? The company announced on Monday the purchase of battery pack production assets from Romeo Power for approximately $3.5 million.
The deal includes equipment, inventory, and intellectual property for high-volume EV (electric vehicle) battery pack and module production.
The Romeo Power assets include production lines for EV pack assembly and precision R&D module and pack development with associated inventory, allowing for the production of modules and vehicle battery packs.
Additionally, the purchased assets include battery testing and validation equipment, computer numerical control (CNC) equipment for battery pack, and module enclosure production.
The purchase also includes all furniture and fixtures.
Establishing internal capabilities for building the Company’s own battery packs and modules reduces reliance on third-party suppliers and lessens the risk associated with supply chain and component shortages.
The Romeo assets will be transferred to Mullen’s high-voltage facility in Monrovia, California, enabling the Company to integrate the assets into its existing facility at a lower cost while enhancing the existing battery pack production capabilities, the press release said.
“Purchasing the Romeo assets is consistent with our battery pack production path and previous announcements for our high voltage facility in Monrovia.
Overall, this purchase further enhances our capabilities for battery pack production right here in California and the U.S.,” said David Michery, CEO and chairman of Mullen Automotive.
Shares of the EV company rose more than +10% on Monday following the announcement, though shares have now fallen more than -99% this year-to-date.
Will Mullen’s latest developments save the company from delisting? Here’s what’s happening with the company today.
Mullen Now Becomes An Approved Vendor For British Airways
Mullen Automotive has now become an approved vendor for British Airways, an SEC filing published on Friday shows.
British Airways is the flag carrier of the United Kingdom.
It is headquartered in London, England, near its main hub at Heathrow Airport and is the second largest UK-based carrier, based on fleet size and passengers carried, behind easyJet.
A day prior to the news, the company announced that they had received an official delisting notice from Nasdaq.
However, Mullen has requested an extension and to present a plan to regain compliance of Nasdaq’s $1 bid requirement.
“Had the Company not requested this hearing, it would have been subject to delisting on Sept. 15, 2023.
Ultimately, there is no guarantee that the Panel will grant an extension of the compliance period,” the company said.
Mullen Automotive has stated that it believes the company is under attack by illegal short selling and is currently investigating their options around this.
The company have even opened a new lawsuit against TD Ameritrade, Charles Schwab, National Finance Services, and others alleging that these broker-dealers engaged in a scheme to manipulate the share price of the Company’s securities.
This lawsuit seeks compensatory damages and injunctive relief from Defendants arising from their unlawful conduct in violation of Section 10b and Rule 10b-5 promulgated thereunder of the Securities Exchange Act of 1934.
Official Statement from the CEO:
“MULN is one of the largest traded stocks on the NASDAQ, and it has seen a precipitous decline in value despite announcements highlighting many Company successes.
I have been extremely frustrated by the performance of our stock and long-suspected illegal short-selling activities.
That is why we engaged Share Intel and the law firms of Christian Attar and Warshaw Burstein to investigate this matter further to protect the Company and its loyal shareholder base.
I am hopeful that this lawsuit sends a clear and unequivocal message to anyone considering any form of illegal trading of Mullen stock.
Our company has a zero-tolerance approach when it comes to manipulative trading practices.
We believe the Company and its shareholders have been significantly harmed by certain traders and their brokers and market makers, such as the named Defendants in the lawsuit, that have facilitated this unlawful conduct.
Rest assured, we will use all legal measures at our disposal to stop illegal trading activities and to protect the Company and its shareholders,” said Mullen CEO David Michery.
Will Mullen Automotive Be Able to Prevent Delisting?
Mullen Automotive will require Nasdaq to approve an extension to prevent delisting.
Otherwise, the CEO will need to look at a massive buyback as an option to drive the company’s share price above $1.
The third way delisting may become preventable is if shareholders create enough buying pressure to send shares up.
Short sellers have the most leverage, especially when it comes to these institutions, so it’s going to be a challenge.
However, getting MULN stock to trade above $1 is still very possible.
Investors should be aware of the risks associated to this play.
But I’m curious to know your thoughts on Mullen Automotive. Will the company’s new developments save it from delisting? Leave your thoughts below.
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