Mullen Eliminates $17.5 Million in Company Debt
July 05 2022 - 9:00AM
via InvestorWire -- Mullen Automotive, Inc. (NASDAQ: MULN)
(“Mullen” or the “Company”), an emerging electric vehicle (“EV”)
manufacturer, announces today that it has eliminated $17.5 million
in company debt and reduced its overall indebtedness from more than
$30 million last year to an estimated $11 million currently.
Mullen continues to strengthen its overall financial balance
sheet with this recent elimination of $17.5 million dollars in
company debt, which was associated with a secured convertible
promissory note (the “Note”) executed on July 23, 2020, with
DBI Lease Buyback Servicing LLC, an affiliate of Drawbridge
Investments LLC ("Drawbridge"). This elimination of debt
leaves Mullen in its best financial health in the Company’s
history, with now less than an estimated $11 million left of
outstanding indebtedness. This elimination of and reduction in debt
is significant, considering the overall debt balance at the end of
2021 was over $30 million.
“We continue to make great progress on our overall company
financial health,” said David Michery, CEO and chairman of Mullen
Automotive. “This recent elimination of debt makes us
financially stronger now, allowing the Company to maintain its
focus on its various EV initiatives.”
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 StatementsCertain 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 partial paydown of the referenced
Note and the debt reduction will be beneficial to the Company,
whether any further debt paydowns will be accomplished and whether
the “Strikingly Different” U.S. Test Drive Tour will take place as
contemplated. 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
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