Mullen CEO Provides Further Update to Shareholders
September 27 2023 - 12:30PM
via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the
“Company”), an emerging electric vehicle (“EV”) manufacturer, today
shares an open letter to shareholders from CEO David Michery,
providing updates on various matters and company initiatives.
Dear Shareholders:
Despite a challenging economic environment where many
enterprises are capital constrained, our balance sheet remains
strong and we have achieved meaningful strides since our last
update to shareholders on August 14, 2023.
Recent company highlights include:
Effective Sept. 22, 2023, Mullen received EPA certification for
Class 3 EV commercial vehicles which is a critical milestone to
allow shipping to customers.
Mullen previously announced that it had requested a hearing
before a Nasdaq Hearings Panel (the “Panel”). The hearing has been
granted and the hearing request stays any suspension or delisting
action pending the hearing and the expiration of any additional
extension period granted by the Panel following the
hearing. The Company has engaged the services of Donohoe
Advisory Associates LLC (“Donohoe Advisory”) to represent its
interests in this matter and to articulate its case to the Panel as
the Company works toward regaining compliance with the Nasdaq bid
price requirement. Donohoe Advisory, which is made up of a
team of former stock exchange officials, was formed in 2004
by David A. Donohoe, Jr., former Chief Counsel for the Listing
Qualifications Department of The Nasdaq Stock Market. Donohoe
Advisory has represented more than 1,500 companies in stock
exchange listing matters since its formation.
The Company has taken a firm stance against manipulative trading
in its stock. On Aug. 29, 2023, the Company and Ulysses Novoa
(collectively “Plaintiffs”) filed a complaint in the United States
District Court Southern District of New York against Defendants TD
Ameritrade, Inc., Charles Schwab Co., Inc., National Financial
Services, LLC, and John Does 1 through 10 (collectively
“Defendants”), alleging that the Defendants engaged in a course of
conduct that was intended to artificially affect market activity
and manipulate the price of Mullen securities between May 4, 2023,
and Aug. 25, 2023, in violation of Section 10(b) of the Securities
Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 promulgated
thereunder. The Plaintiffs served Defendants with the Summons and
Complaint on Aug. 31, 2023. On Sept. 13, 2023, Defendants filed a
request for an extension of time to respond to the complaint. The
Court granted Defendants’ request. Accordingly, Defendants’
response is due filed on or before Oct. 19, 2023.
Additional Company Highlights:
- Commercial Vehicle Purchase Orders:
- On Aug. 31, 2023, British Airways purchased Mullen CAMPUS cargo
vans for use at Los Angeles International Airport and Chicago
O’Hare International Airport. Mullen is now an approved vendor for
additional British Airways airport locations.
- On Aug. 29, 2023, New York Power Authority purchased Mullen
CAMPUS cargo vans for an upstate New York facility after completion
of a successful pilot program and is assessing additional
locations.
- On Aug. 28, 2023, NRTC Automation Group purchased three
all-electric commercial Class 3 Mullen trucks with vehicle
deliveries slated to begin in Q4 2023.
- Mullen 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.
- IRS Approval for Federal EV Tax Credit: On Sept. 19, 2023,
Mullen received its “Qualified Manufacturer” designation from the
IRS, enabling qualification for commercial EV federal tax credits
of up to $7,500 per vehicle for the Mullen ONE, a Class 1 EV cargo
van, and the Mullen THREE, a Class 3 EV cab chassis truck.
- Romeo Power Transaction: On Sept. 11, 2023, Mullen acquired
battery pack production assets from Romeo Power for approximately
$3.5 million. The deal includes equipment, inventory and
intellectual property for high-volume EV (electric vehicle) battery
pack and module production.
- Mullen Class 3 Production:
- On Aug. 10, 2023, Mullen Class 3 commercial vehicle production
began at its Tunica, Mississippi, commercial vehicle assembly
plant.
- On Aug. 21, 2023, the first Mullen THREE class 3 production
vehicle rolled off the line in Tunica, Mississippi.
- On Aug. 24, 2023, Mullen commemorated the start of Class 3
vehicle production with a successful commercial EV launch event
featuring a company presentation, factory tour and vehicle test
drives. Attendees included local county and state leadership,
media, investors and customers.
- Mullen 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
- Stock Buyback Program: Mullen started a $25 million buyback
program on Aug. 16, 2023, which is authorized through Dec. 31,
2023. As of today, the Company has repurchased $5,610,600 in shares
of its common stock, which includes an additional 2 million shares
in new purchases since the Company’s original announcement on Aug.
17, 2023. Company continues to look for opportune moments to
purchase additional shares.
- Other Developments:
- On Sept. 18, 2023, Mullen announced launch of its in-house
fleet telematics solution, Commercial Pulse, which is an advanced
AI system solution providing fleet optimization across Mullen’s
commercial vehicle lineup.
- On Aug. 20, 2023, Mullen kicked off its 13-city “Strikingly
Different” EV U.S. tour in Austin, Texas. The tour is currently at
the halfway point and will run until November 2023. This tour
provides the public with the opportunity to test-drive and
experience Mullen’s commercial and retail EVs on world-class
racetracks across the country, meet and interact with the Mullen
team, and check out the latest electric vehicle technology the
Company has been working on, including AI-powered PERSONA, Mullen’s
proprietary advanced facial recognition technology.
The Company has achieved significant milestones and continues to
deliver on our commitments. I remain optimistic and committed that
Mullen is on the right path to achieving all business objectives,
which will benefit our customers, shareholders and employees.
Sincerely,
David Michery, CEO
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 outcome of the appeal to the Nasdaq Hearings
Panel, whether the Company will be successful in the lawsuit
against TD Ameritrade, Charles Schwab, National Financial Services
and other named Defendants, the timing of delivery and order
completion for the vehicles purchased, the timing for revenue
recognition, the impacts on the Company from the Stock Buyback
Program, whether the Company will purchase additional shares under
the Stock Buyback Program, whether the Romeo Power Transaction or
the implementation of the fleet telematics solution will prove
successful and whether the “Strikingly Different” EV U.S. tour will
result in purchase orders. 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
- Pictured: Mullen ONE, Mullen THREE, Mullen FIVE and Bollinger
B1
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