Here's what you need to know:
- Mullen Automotive will enact a 1-for-100 reverse stock split effective June 2, 2025.
- The reason is to comply with Nasdaq’s $1.00 minimum bid price requirement.
- Shareholders approved the reverse split on May 21, and the board selected the 1-for-100 ratio.
- Despite the split, Mullen cautions there is no guarantee it will meet the $1.00 minimum bid price requirement.
Electric vehicle manufacturer Mullen Automotive has confirmed it will effect a 1-for-100 reverse stock split of its common stock with a par value of $0.001 per share effective June 2, 2025.
A reverse stock split is when a publicly traded company decides to consolidate its existing shares into fewer, more valuable shares. In Mullen's case, the move is intended to bring it into compliance with the $1.00 minimum bid price requirement in order to maintain its Nasdaq listing.
The 'MULN' trading symbol will remain unchanged.
Currently, there are around 80 million shares of Common Stock. Following the reverse stock split, this will be reduced to 800 thousand shares.
The company also added there's no guarantee it will meet the minimum bid price requirement.
Mullen, which purchased now-bankrupt Nikola Motors' battery production assets this past January and bought a controlling interest in Bollinger Motors in September 2022 for $148 million, saw its stockholders approve the reverse stock split, at a ratio within the range of 1-for-2 to 1-for-250, on May 21. The board of directors ultimately approved the 1-for-100 reverse split ratio.
The move, according to Mullen, "will automatically combine and convert 100 current shares of the Company’s Common Stock into one issued and outstanding share of Common Stock."
The split will affect all stockholders but it won't change their percentage interest in the company.
Earlier this month, Mullen announced its Q2 results which, according to CEO and Chairman David Michery, "Our... revenue of $5 million outperformed Q2 2024 revenue of $33,000 by more than 143 times. This growth underscores the effectiveness of our strategic initiatives and increasing demand for our vehicles despite challenging market conditions.”
[Related: Mullen signs $210 million truck order with UAE's Volt Mobility]
Mullen's controlling interest in subsidiary Bollinger Motors comes at a challenging time. A federal judge ordered the company into receivership following a lawsuit filed in March by founder Robert Bollinger. He claims the company he founded owes him $10.5 million from a personal loan he made.
[Related: Federal judge places Bollinger Motors in receivership, assets frozen]
Mullen confirms it is "exploring various options to challenge and resolve this matter and has engaged litigation counsel."
