Mullen Automotive Inc. a leading electric vehicle
Mullen Automotive Inc. a leading electric vehicle (“EV”) manufacturer, has officially announced that it will implement a 1-for-60 reverse stock split (“Reverse Stock Split”) of its common stock, par value $0.001 per share (“Common Stock”). This corporate action is scheduled to take effect on February 18, 2025, at 12:01 a.m. Eastern Time. Following the Reverse Stock Split, Mullen’s Common Stock will continue to trade on The Nasdaq Capital Market (“Nasdaq”) under the existing ticker symbol MULN. However, trading will commence on a split-adjusted basis when the market opens on the same day. In conjunction with this change, the new CUSIP number assigned to Mullen’s Common Stock post-split will be 62526P604.
Purpose and Rationale Behind the Reverse Stock Split
The primary objective of the Reverse Stock Split is to bring Mullen into compliance with Nasdaq’s minimum bid price requirement of $1.00 per share, which is essential for maintaining its listing on the exchange. Nasdaq listing rules require a company’s stock to trade above a $1.00 threshold for a sustained period, and Mullen’s decision to execute the Reverse Stock Split is aimed at achieving this requirement. However, there is no guarantee that this move will enable Mullen to consistently maintain compliance with the Nasdaq listing standards.
During Mullen’s Special Meeting of Stockholders on January 31, 2025, shareholders approved a proposal authorizing the Company’s board of directors to implement a reverse stock split within a range of 1-for-2 to 1-for-100. After thorough consideration, the board elected to proceed with a 1-for-60 reverse split ratio. To execute this decision, the Company will file a Certificate of Amendment to its Second Amended and Restated Certificate of Incorporation, which will become effective as of February 18, 2025.
Impact of the Reverse Stock Split
Upon the implementation of the Reverse Stock Split, every sixty (60) shares of Mullen’s Common Stock will be automatically combined and converted into a single issued and outstanding share. This adjustment will proportionally impact all stockholders without altering their percentage ownership in the Company, except for minor differences resulting from the rounding up of fractional shares.
Additionally, proportional adjustments will be made to outstanding equity awards, warrants, convertible notes, and certain agreements to align with the new share structure. However, the number of shares reserved for issuance under the Company’s 2022 Equity Incentive Plan, as amended, will remain unchanged despite the Reverse Stock Split. Similarly, the per-share conversion price of Mullen’s preferred stock series will be adjusted accordingly based on their respective terms.
It is important to note that the Reverse Stock Split will not modify the par value of the Common Stock. Furthermore, the total number of authorized shares of Common Stock, preferred stock, or any series of preferred stock will remain unchanged.
Handling of Fractional Shares
Mullen has confirmed that no fractional shares will be issued in connection with the Reverse Stock Split. Instead, any fractional shares resulting from the conversion will be rounded up to the nearest whole share. This ensures that all stockholders receive full shares without losing value due to the corporate action.
Role of the Transfer Agent and Stockholder Instructions
To facilitate the Reverse Stock Split, Mullen’s transfer agent, Continental Stock Transfer & Trust Company, has been designated as the exchange agent. Stockholders who hold their pre-split shares electronically in book-entry form will not be required to take any action, as their holdings will be automatically adjusted. Similarly, those who hold shares through a brokerage, bank, trust, or other nominee account will see their positions updated automatically in accordance with their respective institution’s processes.
Stockholders with physical stock certificates are advised to contact Continental Stock Transfer & Trust Company for further instructions on exchanging their certificates, if applicable.
Mullen Automotive Inc.
Mullen Automotive Inc. is a Southern California-based company dedicated to the development and production of the next generation of commercial electric vehicles. With two U.S.-based manufacturing facilities, Mullen is well-positioned to advance its mission of sustainable transportation solutions. The Company’s 120,000-square-foot manufacturing plant in Tunica, Mississippi, commenced commercial vehicle production in August 2023, marking a significant milestone in Mullen’s expansion efforts. Additionally, the Company operates a larger, 650,000-square-foot facility in Mishawaka, Indiana, where further developments in EV production are underway.
As of January 2024, Mullen successfully secured both California Air Resources Board (CARB) and Environmental Protection Agency (EPA) certifications for its flagship commercial vehicles: the Mullen ONE, a Class 1 EV cargo van, and the Mullen THREE, a Class 3 EV cab chassis truck. These vehicles are now officially available for sale in the U.S. market, reinforcing Mullen’s commitment to providing reliable and sustainable transportation solutions for businesses.
Expansion of Commercial Dealer Network
Mullen has also significantly expanded its commercial dealer network, enhancing its market reach and customer accessibility. The Company’s network now includes seven key dealers, which are:
- Pape Kenworth
- Pritchard EV
- National Auto Fleet Group
- Ziegler Truck Group
- Range Truck Group
- Eco Auto
- Randy Marion Auto Group
This strategic expansion ensures that Mullen’s commercial EVs have strong sales and service coverage across multiple critical regions, including the West Coast, Midwest, Pacific Northwest, New England, and Mid-Atlantic markets. By partnering with these established dealers, Mullen is positioning itself for greater market penetration and customer adoption.
