Mullen CEO Addresses Letter to Shareholders
December 19 2023 - 12:00PM
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 its recent
reverse stock split.
Dear Mullen Shareholders:
As most of you are aware by now, at the recently reconvened
shareholders meeting held on Dec. 18, 2023, Mullen shareholders
approved the Company effecting a reverse stock split.
Presenting this reverse split proposal to the Company’s Board of
Directors for consideration and thereafter to our shareholders was
one of the most difficult decisions I have made as CEO, especially
in light of the prior reverse stock splits implemented by the
Company and the dilutive impact those have had on shareholders.
I have stated on multiple occasions that the price of our stock
does not reflect the value of the Company. Mullen has achieved many
important milestones, including the sales and delivery of vehicles
assembled at its impressive facilities - but regardless of these
achievements, our stock continued to decline. We also announced
that we engaged law firms to investigate and file lawsuits based on
manipulative trading activities that we believe have occurred with
our stock. However, despite all of these actions, the Company stock
continued to trade below Nasdaq’s minimum one dollar bid price
beyond allowed timelines resulting in the Company receiving a
delisting notice. On appeal, the Company was granted until Jan. 22,
2024, to demonstrate that the stock had traded above one dollar for
at least 20 consecutive trading days, failing which the Company
would be permanently delisted from the Nasdaq capital markets.
There was only one way to give the Company the best possible
chance of regaining minimum bid compliance for the mandated 20
trading days and that was by doing a significantly large reverse
stock split.
As mentioned, I did not come to this decision lightly and
certainly took no pleasure in taking these initiatives, but in
order for the Company to survive and prosper, which is certainly in
the best interests of all shareholders, the Company needs to raise
capital in 2024 to fund initiatives until such time as it is cash
flow positive. Most sources of capital are not willing to provide
financing to the Company if it is no longer on a major national
exchange. Being demoted to an over-the-counter exchange where
market making and trading volumes are significantly lower would put
the Company - and hence its shareholders - at great risk.
I know many of our loyal shareholders were very outspoken about
not wanting another reverse stock split, and I completely
understand their sentiment. However, Mullen‘s Board and I weighed
the alternatives of not doing the reverse and losing our Nasdaq
listing and came to the difficult decision to recommend that
shareholders vote in favor of the reverse split - thereby giving us
the opportunity of creating long term value for all investors who
have bought our stock.
I mentioned during the Q&A session at our reconvened
shareholders meeting, I personally did not vote my shares, and they
were not included in the count that resulted in passing the
proposal. While I firmly believe the reverse stock split is in the
best interest of the shareholders, I also understand many parties
were opposed to the measure and so I decided I would leave this
decision solely in the hands of shareholders.
In closing, I understand that many of you are disappointed, but
please know that I remain fully committed to achieving the
Company’s goals which I believe are within reach and will be made
exponentially easier should the Company be able to maintain its
publicly traded status on a major capital markets national
exchange. The passing of the proposal to effect a reverse split
gives us that opportunity.
Thanks for your support and understanding.
Sincerely,
David Michery
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 how Mullen’s stock will perform after the Reverse
Stock Split, Mullen’s ability to timely implement the Reverse Stock
Split, the success of the Reverse Stock Split, and Mullen’s ability
to regain compliance with the Nasdaq Listing standards. 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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