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:
We have achieved meaningful strides since our last update to
shareholders on Sept. 27, 2023.
Recent Company highlights include:
Start of manufacturing commenced on Nov. 1, 2023, at the Tunica
Assembly plant for Class 1 cargo vans. The Environmental Protection
Agency (“EPA”) has notified Mullen that its Certificate of
Conformity can be expected to arrive by Friday, Nov. 3, 2023. We
expect to meet our previously announced targets of 300 cargo vans
delivered during calendar 2023 and 6,000 cargo vans delivered in
calendar 2024.
On Oct. 26, 2023, Mullen Automotive was granted permission by
the Nasdaq Hearings Panel to continue its listing on The Nasdaq
Capital Market. This is contingent on meeting the following
conditions:
- On or before Jan. 22, 2024, the Company’s stock maintains a
closing bid price of $1 per share for 20 consecutive trading days.
The Company intends to continue to implement its business plan to
regain and maintain compliance with Nasdaq’s $1 minimum bid price
and will only effectuate a reverse stock split if required to
remain listed on Nasdaq.
- By Mar. 8, 2024, the Company must hold an annual shareholder
meeting that satisfies Nasdaq Listing Rule 5620(a), allowing
stockholders to discuss Company affairs with management. This is
necessary, as the previous meeting held on Aug. 3, 2023, did not
meet the required criteria. To achieve compliance, Mullen plans to
hold a combined 2023 and 2024 annual meeting.
On Oct. 9, 2023, we appointed Marianne McInerney as Chief
Strategy Officer. McInerney, with nearly two decades of experience
in the automotive and transportation industry, will focus on growth
opportunities and strategic initiatives for Mullen’s commercial and
consumer vehicles, as well as governmental affairs.
As mentioned in late September, the Company received federal EPA
certification on Sept. 22, 2023, for the Class 3 vehicle, and IRS
approval as a "qualified manufacturer" on Sept. 14, 2023, making
Mullen’s Class 3 vehicles eligible for up to $7,500 in federal EV
tax credits.
On Oct. 23, 2023, Mullen provided an update on a lawsuit filed
on Aug. 29, 2023, in the Southern District of New York against TD
Ameritrade, Charles Schwab, National Finance Services and others.
The lawsuit alleges stock manipulation and unlawful stock trading
practices. The legal action seeks compensatory damages and
injunctive relief for violations of Section 10b and Rule 10b-5
under the Securities Exchange Act of 1934. Mullen's legal
representatives express optimism about exposing the alleged
wrongful conduct of the defendants and seek to protect the rights
of Mullen and its shareholders. The Company is determined to pursue
all available remedies to safeguard its interests and those of its
shareholders.
Mullen Automotive filed a preliminary proxy statement on Oct.
19, 2023, with the SEC for a special stockholders' meeting on Dec.
15, 2023, to authorize a potential reverse stock split of its
common stock (1-for-2 to 1-for-100) to maintain a share price of at
least $1. The Board will decide the final split ratio after
stockholder approval, with the option to abandon, delay or postpone
the reverse stock split. It will not affect stockholders' ownership
or voting power, except for fractional share conversion. The
completion of the reverse stock split is subject to market
conditions and stockholder approval, with no guarantees of the
intended effects. The Board can choose not to proceed if it's no
longer in the Company's or stockholders' best interests.
As of Oct. 31, 2023, Mullen has repurchased 5.7 million shares
of its common stock as part of our $25 million buyback program
which began on Aug. 16, 2023, and is authorized through Dec. 31,
2023. Currently, Mullen is in a black-out period until one full
trading day after filing our 10K which is expected to be filed on
or before Dec. 29, 2023. Mullen plans to extend the buyback program
for an additional six months.
On Sept. 28, 2023, Mullen announced the delivery of the first 10
Class 3 EV Cab Chassis Trucks to Randy Marion Automotive Group.
These 10 vehicles are part of a purchase order for 1,000 Class 3
vehicles, valued at $63 million, originally placed in May 2023. An
additional 140 units are planned for delivery by the end of 2023,
with the remaining 850 vehicles expected to be delivered throughout
2024.
Over the past few months, the Company has reached critical
milestones towards accomplishing our ultimate goal to be a leader
in the EV industry. We remain steadfastly dedicated to our
employees, stakeholders and customers during this journey and thank
you for your continued support of Mullen.
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 whether: the Certificate of Conformity will be
received within the expected timeframe; the previously announced
target numbers and dates of deliveries cargo vans will be met; the
additional Class 3 EV Cab Chassis Trucks that are planned for
delivery by the end of 2023 and 2024 will occur within the stated
timelines; the Company will satisfy the conditions for continued
listing set forth by the Nasdaq Hearings Panel; the outcome of the
lawsuit against TD Ameritrade, Charles Schwab, National Financial
Services and other named Defendants; and Shareholders will vote to
approve a reverse stock split of the Company’s common stock;
Further forward-looking statements include the impacts on the
Company from the Stock Buyback Program and whether the Company will
extend the Stock Buy Back program or purchase additional shares
under that Program. 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
- Mullen Commercial Manufacturing in Tunica, MS
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