Mullen Extends Maturity of Senior Secured Convertible Note
June 21 2022 - 8:30AM
via InvestorWire -- Mullen Automotive, Inc. (NASDAQ: MULN)
(“Mullen” or the “Company”), an emerging electric vehicle (“EV”)
manufacturer, announces today that it has extended the maturity of
a senior secured convertible note of $28 million, originally due in
July 2022, by two years.
The Company originally entered into a secured convertible
promissory note (the “Note”) on July 23, 2020, with DBI Lease
Buyback Servicing LLC, an affiliate of Drawbridge Investments LLC
("Drawbridge"). Esousa Holdings, LLC, an existing Mullen
shareholder, has acquired the Note from Drawbridge and entered into
an agreement with Mullen to extend the maturity date of the Note by
two years. The original Note was scheduled to mature on July 28,
2022, and the Note is now extended to July 2024.
“This note extension with Esousa is important for us, as it
preserves our cash flow at a time when the economy appears to be
hitting some headwinds, and it provides the Company with a
strengthened cash position, allowing us to execute on our EV
plans,” said David Michery, CEO and chairman of Mullen
Automotive.
Further details on this transaction can be found on Mullen
Automotive’s most recently filed 8-K, found here.
Mullen recently announced the “Strikingly Different” U.S. Test
Drive Tour for the Mullen FIVE EV Crossover, covering 19 cities
across the U.S. The tour will begin this fall in Southern
California and work its way throughout the U.S. Further details can
be found here, or place your Mullen FIVE reservation
here.
About MullenMullen is a Southern
California-based automotive company that owns and partners with
several synergistic businesses working toward the unified goal of
creating clean and scalable energy solutions. Mullen has evolved
over the past decade in sync with consumers and technology trends.
Today, the Company is working diligently to provide exciting EV
options built entirely in the United States and made to fit
perfectly into the American consumer’s life. Mullen strives to make
EVs more accessible than ever by building an end-to-end ecosystem
that takes care of all aspects of EV ownership.
Forward-Looking Statements
Certain statements in this press release that are not historical
facts are forward-looking statements within the meaning of Section
27A of the Securities Exchange Act of 1934, as amended. Any
statements contained in this press release that are not statements
of historical fact may be deemed forward-looking statements. Words
such as "continue," "will," "may," "could," "should," "expect,"
"expected," "plans," "intend," "anticipate," "believe," "estimate,"
"predict," "potential" and similar expressions are intended to
identify such forward-looking statements. All forward-looking
statements involve significant risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied in the forward-looking statements, many of which are
generally outside the control of Mullen and are difficult to
predict. Examples of such risks and uncertainties include, but are
not limited to, whether the maturity date extension of the Note
will be beneficial to the Company and whether the Company’s cash
position will be sufficient to achieve its objectives. Additional
examples of such risks and uncertainties include, but are not
limited to, (i) Mullen’s ability (or inability) to obtain
additional financing in sufficient amounts or on acceptable terms
when needed; (ii) Mullen's ability to maintain existing, and secure
additional, contracts with manufacturers, parts and other service
providers relating to its business; (iii) Mullen’s ability to
successfully expand in existing markets and enter new markets; (iv)
Mullen’s ability to successfully manage and integrate any
acquisitions of businesses, solutions or technologies; (v)
unanticipated operating costs, transaction costs and actual or
contingent liabilities; (vi) the ability to attract and retain
qualified employees and key personnel; (vii) adverse effects of
increased competition on Mullen’s business; (viii) changes in
government licensing and regulation that may adversely affect
Mullen’s business; (ix) the risk that changes in consumer behavior
could adversely affect Mullen’s business; (x) Mullen’s ability to
protect its intellectual property; and (xi) local, industry and
general business and economic conditions. Additional factors that
could cause actual results to differ materially from those
expressed or implied in the forward-looking statements can be found
in the most recent annual report on Form 10-K, quarterly reports on
Form 10-Q and current reports on Form 8-K filed by Mullen with the
Securities and Exchange Commission. Mullen anticipates that
subsequent events and developments may cause its plans, intentions
and expectations to change. Mullen assumes no obligation, and it
specifically disclaims any intention or obligation, to update any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as expressly required by law.
Forward-looking statements speak only as of the date they are made
and should not be relied upon as representing Mullen’s plans and
expectations as of any subsequent date.
Contact:Mullen Automotive, Inc.+1 (714)
613-1900www.MullenUSA.com
Wire Service Contact:InvestorWire (IW) Los
Angeles, Californiawww.InvestorWire.com212.418.1217
OfficeEditor@InvestorWire.com
- Company extends maturity of $28 million note to July 2024
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