Mullen reverse stock split

Mullen Seeks Reverse Stock Split Approval as Stock Faces Record-Low Levels

Mullen Automotive, an emerging player in the electric vehicle (EV) manufacturing sector, disclosed its submission of a preliminary proxy statement to the Securities and Exchange Commission (SEC). This statement pertains to an impending special stockholders’ meeting scheduled for December 15, 2023. The central agenda of this meeting is to seek authorization from the Board of Directors of Mullen to execute a reverse stock split of the common stock of Mullen. This maneuver could take the form of an exchange ratio ranging from 1-for-2 to 1-for-100.


Following the announcement, Mullen Automotive’s stock experienced a downturn in market value.

It’s important to note that the reverse stock split of Mullen will solely be activated if required to reclaim compliance with Nasdaq Listing Rule 5550(a)(2), which stipulates a minimum bid price of $1.00. Companies receive a notification from Nasdaq if their stock trades below $1 for 30 consecutive business days, after which they are granted a grace period to rectify the situation or face potential delisting.


The ultimate split ratio will be determined by the Board post stockholder endorsement, and they retain the authority to either rescind, delay, or postpone the reverse stock split as deemed necessary.


It is crucial to highlight that this reverse stock split would not influence any stockholder’s percentage ownership or voting power, except in cases where it results in a stockholder receiving a cash equivalent in lieu of fractional shares.


The actualization of the proposed reverse stock split is contingent on market conditions and other customary requisites, including obtaining approval from stockholders. Nevertheless, there is no guarantee that the reverse stock split will come to fruition, or that it will lead to an augmented per-share value or achieve its intended effects. The Board maintains the prerogative to opt out of proceeding with the reverse stock split should they determine that its implementation is no longer in the best interests of the Company and its stockholders.


Earlier this week, Mullen conveyed its adherence to the production schedule of 150 Class 3 EV trucks by year-end. Additionally, the company expressed its readiness to commence production and deliveries of Class 1 EV cargo vans in the fourth quarter of 2023.


Despite these announcements, investor sentiment remained unaffected, causing the stock to dip further, already having closed below the $1 threshold every day since August 16. This descent comes on the heels of the company’s implementation of a one-for-nine reverse stock split on August 11.


For the year-to-date period, Mullen Automotive’s stock has witnessed a substantial decline of 99.6%, starkly contrasting with the 12% gain observed in the S&P 500.

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