Mullen CEO David Michery Publishes Open Letter to Shareholders Addressing Declining Stock Values
August 23 2023 - 2:32PM
via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the
“Company”), an emerging electric vehicle (“EV”) manufacturer, today
shares an open letter to Mullen shareholders addressing declining
stock values.
Dear Mullen Shareholders:
The Company has received numerous requests to respond to the
ongoing decline of our stock. Many of these communications have
been addressed to me personally with less than kind, and sometimes
threatening statements.
As CEO of this Company, I take all shareholders’ concerns
seriously. One of my primary responsibilities is to execute the
Company’s business plan, and as evidenced by multiple prior
communications to the public, the Company continues to make
significant strides in that regard. I will summarize some of those
at the end of this statement.
I am very disappointed by the performance of our stock. As
I have previously publicly stated, I do not believe the trading
price of our stock even closely resembles the Company’s actual
value. It is evident that, regardless of meeting significant
corporate milestones (i.e., vehicle production completion within
projected timelines), stock traders continue to place downward
pressure on the stock, causing the price to fall.
I previously announced that the Company engaged Share Intel and
other parties to investigate what I suspect to be unlawful trading
practices in our stock. We are assembling all the data received to
date and should have something to announce in the coming days.
I am extremely frustrated that the hard work of Mullen‘s
dedicated team and the significant momentum and successes achieved
to date are overshadowed by the unrealistic value attributed to our
stock. The Company and I have demonstrated our commitment to the
success of our initiatives by purchasing its stock through the
previously announced Share Buy Back program. I have also
personally recently purchased stock, demonstrating my unwavering
confidence in our Company.
I remain committed to executing the Company’s business plan and
using all measures at our disposal to eliminate any unlawful
trading practices in our stock.
Here are some recent highlights of company success:
Financial Highlights:
- The Company had cash balances of $227.4 million on June 30,
2023. - Net cash used in operating activities
was $113.6 million for the nine months ended June 30, 2023.
- Net cash used in investing activities for the
nine months ended June 30, 2023, was $107.4 million; primarily
consisting of the ELMS acquisition where the Company acquired a
650,000 square-foot Mishawaka production facility (originally built
by GM to produce Hummer vehicles). - For
the nine months ended June 30, 2023, we raised $364.1 million in
net cash provided by financing activities.
- The Company’s total assets on June 30, 2023, were $600.0
million and total debt was only $7.3 million.
- The Company reported $351.8 million of stockholders’ equity on
June 30, 2023, as compared to $157.0 million on Sept. 30,
2022.
- First revenues of $308,000 were reported for the quarter ended
June 30, 2023.
- Research and development expenses for the quarter ended June
30, 2023, were $22.1 million as compared to $7.3 million for the
quarter ended June 30, 2022.
Operational Highlights:
- Closed on controlling interest of Bollinger Motors in Sept.
2022, adding commercial class 4-6 vehicle programs along with the
B1 and B2 sport utility trucks, increasing Mullen’s overall EV
lineup.
- Closed on the acquisition of ELMS in Dec. 2022 including all IP
for Class 1 & Class 3 vehicles as well as the manufacturing
plant in Mishawaka, Indiana.
- The Company has received $279 million in purchase orders for
Mullen Class 1 and Class 3 EV Vans and Trucks from Randy Marion
Automotive Group with initial revenues from Class 3 vehicle
deliveries expected during the quarter ending Sept. 30, 2023.
- Delivery of first EV campus vans in March 2023.
- Completed all required FMVSS testing requirements for vehicle
crashworthiness and occupant safety validation for Class 1 in April
2023.
- Partnered with Amerit Fleet Solutions in May 2023 to support
national service, parts and warranty for all commercial
vehicles.
- Commercial vehicle assembly equipment transfer completed from
Mishawaka, Indiana, plant to Tunica, Mississippi, facility in July
2023 enabling commercial Class 1 and Class 3 start of
production.
- Production milestone achieved in Aug. 2023 with the start of
commercial assembly line with the first Class 3 completed vehicles
rolling off the line.
Regards,
David MicheryCEO and ChairmanMullen Automotive, Inc.
About MullenMullen Automotive (NASDAQ: MULN) is
a Southern California-based automotive company building the next
generation of electric vehicles (“EVs”) that will be manufactured
in its two United States-based assembly plants. Mullen’s EV
development portfolio includes the Mullen FIVE EV Crossover,
Mullen-GO Commercial Urban Delivery EV, Mullen Commercial Class 1-3
EVs and Bollinger Motors, which features both the B1 and B2
electric SUV trucks and Class 4-6 commercial offerings. On Sept. 7,
2022, Bollinger Motors became a majority-owned EV truck company of
Mullen Automotive, and on Dec. 1, 2022, Mullen closed on the
acquisition of Electric Last Mile Solutions’ (“ELMS”) assets,
including all IP and a 650,000-square-foot plant in Mishawaka,
Indiana.
To learn more about the Company, visit www.MullenUSA.com.
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 the findings from the Share Intel and other parties’
investigations into suspicious trading activities or the timing of
the Company’s announcement of the findings to shareholders.
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
Corporate Communications:InvestorBrandNetwork
(IBN) Los Angeles, California www.InvestorBrandNetwork.com
310.299.1717 Office Editor@InvestorBrandNetwork.com
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