Mullen Automotive Inc., an electric vehicle (EV) manufacturer, has announced a 1-for-100 reverse stock split of its common stock, effective September 17, 2024, at 12:01 a.m. Eastern Time. Following this reverse split, the common stock will continue to trade on The Nasdaq Capital Market (Nasdaq) under the existing symbol MULN, but on a split-adjusted basis starting with the market open on September 17, 2024. The new CUSIP number for the common stock after the split will be 62526P505.
This reverse stock split aims to help the company comply with Nasdaq’s $1.00 minimum bid price requirement. However, there is no guarantee that the company will meet this requirement.
On September 9, 2024, at the Company’s Special Meeting of Stockholders, stockholders approved a proposal to authorize a reverse stock split within a range of 1-for-2 to 1-for-100. The board of directors has chosen a 1-for-100 ratio. A Certificate of Amendment to the Second Amended and Restated Certificate of Incorporation will be filed to effect the reverse split.
Under the 1-for-100 reverse split, 100 existing shares of common stock will be combined into one new share. Adjustments will also be made to outstanding equity awards, warrants, and convertible notes according to their terms. The number of shares reserved for issuance under the Company’s 2022 Equity Incentive Plan will remain unchanged. The split will also adjust the per-share conversion price of the preferred stock, but will not affect the par value or the total authorized number of shares of common or preferred stock.
Fractional shares will not be issued; instead, all fractional shares will be rounded up to the nearest whole share. The reverse split will be uniformly applied to all stockholders and will not change their percentage interest in the company’s equity, except for rounding adjustments.
Continental Stock Transfer & Trust Company will act as the exchange agent for the reverse split. Registered stockholders holding shares electronically will not need to take any action to receive their post-split shares. Those holding shares through brokers, banks, trusts, or other nominees will have their positions adjusted automatically in accordance with their brokers’ processes.
Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of commercial EVs with two United States-based vehicle plants located in Tunica, Mississippi, (120,000 square feet) and Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen began commercial vehicle production in Tunica.
In September 2023, Mullen received IRS approval for federal EV tax credits on its commercial vehicles with a Qualified Manufacturer designation that offers eligible customers up to $7,500 per vehicle.
As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are California Air Resource Board (“CARB”) and EPA certified and available for sale in the U.S. CARB issued HVIP approval on the Mullen THREE, Class 3 EV truck, providing up to a $45,000 cash voucher at time of vehicle purchase.
The Company has also recently expanded its commercial dealer network with the addition of Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group and Eco Auto, providing sales and service coverage in key Midwest, West Coast and Pacific Northwest and New England markets. The Company also recently announced Foreign Trade Zone (“FTZ”) status approval for its Tunica, Mississippi, commercial vehicle manufacturing center. FTZ approval provides a number of benefits, including deferment of duties owed and elimination of duties on exported vehicles.
