Mullen Continues Acquisition Path With Purchase of ELMS Assets Including Factory in Mishawaka, IN., Enabling EV Production for Retail and Commercial Vehicle Lines
October 19 2022 - 8:00AM
via NewMediaWire – Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen”
or the “Company”), an emerging electric vehicle (“EV”)
manufacturer, announces the US Bankruptcy Court approval on Oct.
13th, 2022 of its acquisition of electric vehicle company ELMS’s
(Electric Last Mile Solutions) assets in an all cash
purchase. In the Chapter 7 approved transaction, Mullen will
acquire ELMS’s manufacturing plant, all inventory and intellectual
property.
Acquisition benefits include:
- The factory in Mishawaka, IN,
providing Mullen with the capability to produce up to 50,000
vehicles per year
- Allows acceleration of the path
to production and market for Mullen FIVE and Bollinger B1, B2
retail vehicles by 12 plus months
- Commercial Product Platforms to
be assembled at Mullen’s Tunica MS. Facility for Launch of Mullen
Class 1 and Class 3 Commercial Delivery vehicles into Market in
2023.
- The platform and plant
acquisition results in a significant reduction of the Company’s
previously forecast overall spend
The Mishawaka, IN factory that forms part of the Company’s
acquisition, previously produced General Motors Hummer H2 SUV and
SUT and also subsequently contract manufactured the Mercedes-Benz
R-Class vehicle. This makes it the perfect fit for production of
the Mullen and Bollinger portfolio of consumer vehicles. The ELMS
asset acquisition and the recent acquisition of the majority
ownership of Bollinger Motors, gives Mullen the ability to
integrate Bollinger’s vehicle platforms, B1 and B2 along with
Mullen’s FIVE and FIVE RS platforms into an already existing and
capable high volume manufacturing facility. As a result, this will
accelerate launch of the Bollinger B1, B2 retail vehicles by 12
plus months.
Manufacturing optimization will include moving the Mullen FIVE
EV Crossover production to the Mishawaka Factory from the Tunica,
MS facility. Mullen FIVE production is planned to begin production
in 2024. Tunica will now become the Commercial Manufacturing Center
and capitalize to produce all Mullen and Bollinger Class 1 to 6
commercial vehicles.
With the additional Manufacturing capacity, total production
volumes are expected to exceed Mullen’s previous business plan
projections. The commercial portfolio is expected to increase over
50% with the addition of the ELMS assets and the retail portfolio
is expected to more than double with the addition of Bollinger
vehicles and the manufacturing capacity of Mishawaka.
The Company’s majority ownership acquisition of Bollinger Motors
was closed in August 2022 with a combination of stock and cash. The
ELMS acquisition will be completed as an all-cash purchase.
Highlights of the Acquisition:
Per the Asset Purchase Agreement which can be viewed from the
Company’s recent public filings, the ELMS Assets purchased by
Mullen were as follows:
- all Intellectual Property,
including, without limitation, the registered intellectual property
specifically listed in the Asset Purchase Agreement
- all inventory including vehicles,
finished and unfinished, finished goods, part modules component
parts, raw materials, tooling, including but not limited to product
specific tooling, all manufacturing data that is required or
reasonably helpful for the assembly of the Class 1 Electric
commercial delivery vans and Class 3 Commercial Delivery Cab
Chassis
- purchase of real property located
in Mishawaka, Indiana, together with all buildings, improvements
and fixtures
- all tangible personal property
including equipment, machinery, furniture, supplies, computer
hardware, data networks, servers (with data and software),
communication equipment, software, discs, and all other data
storage media
“Mullen’s acquisition of Bollinger was one of the largest
transactions of its kind in the EV market. Upon closing the ELMS
transaction, the Company will be in a position to strategically
leverage all its acquired assets to shorten its production path and
aggressively expand into the commercial and consumer EV market,”
said David Michery, CEO and chairman of Mullen Automotive.
About Mullen
Mullen 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 closing of the ELMS acquisition will
occur and if so, be beneficial to the Company; whether the
anticipated manufacturing capability to produce 50,000 vehicles per
year will prove reliable; whether Mullen’s cash availability will
be sufficient for closing and funding of vehicle launches; whether
the platform and plant acquisition will result in the anticipated
reduction of the Company’s previously forecast spend; whether
utilizing the manufacturing facility in Mishawaka, IN will result
in accelerating development of the Bollinger B1, B2 retail vehicles
by 12 plus months, or at all; whether the anticipated
manufacturing optimization and forecast total Mullen and Bollinger
vehicle production volumes detailed in this Press Release will
materialize; whether the production of the Mullen FIVE will
commence in 2024; whether the ELMS acquisition will be
completed as an all-cash purchase; whether the Company’s cash on
hand and other funding commitments will realize sufficient proceeds
to accomplish closing the acquisition and/or the funding of vehicle
launches; and whether the Company will be successful with its
efforts to lever all its acquired assets to shorten its production
path and expand into the commercial and consumer EV markets.
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
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