Mullen Automotive Inc. (NASDAQ:MULN), a player in the electric vehicle (EV) market, has secured additional funding through the issuance of convertible notes and warrants, as detailed in a recent 8-K filing with the Securities and Exchange Commission (SEC).
On Monday, July 9, 2024, the company entered into agreements with certain investors to purchase senior secured convertible notes totaling an initial aggregate principal amount of $10.5 million, including a 5% original issue discount. The company also issued five-year warrants exercisable for an aggregate of 3,834,726 shares of common stock.
In a separate transaction on the same day, Mullen Automotive reached a settlement with Ault Lending, LLC, issuing them senior secured convertible notes with an initial aggregate principal amount of $3,157,894.74, including the original issue discount, and warrants exercisable for 1,150,416 shares of common stock. This issuance was in exchange for 76,923 shares of the company's Series E Preferred Stock held by Ault Lending.
The company also disclosed the issuance of 837,600 additional shares of common stock from June 10 through July 8, 2024, as part of a settlement agreement with Silverback Capital Corporation.
Furthermore, at a special meeting of stockholders held on Monday, July 9, 2024, the company received approval for the above-mentioned securities issuances, which are intended to comply with Nasdaq Listing Rule 5635(d). The stockholders also approved the potential issuance and sale of common stock pursuant to a common stock purchase agreement dated May 21, 2024, with an equity line investor.
These financial moves are part of Mullen Automotive's strategy to secure the capital necessary for its operations and growth in the competitive EV industry. The issuance of the notes and warrants are exempt from registration under the Securities Act of 1933, as amended, according to Section 4(a)(2) for transactions by an issuer not involving any public offering, and under Section 3(a)(9) for transactions involving exchanges with existing security holders.
The information in this article is based on the company's recent SEC filing and is intended to provide investors with the latest developments regarding Mullen Automotive's financial strategies.
In other recent news, Mullen Automotive has been making significant strides in the electric vehicle (EV) sector. The company has announced the launch of POWER BOOST, a battery exchange program that allows Class 1 EV cargo van customers to upgrade their lithium-ion battery packs to solid-state polymer battery packs. This development is expected to extend the driving range of these vehicles to over 200 miles. Production of the Mullen ONE equipped with the solid-state polymer battery pack is slated for the second half of 2025.
Mullen Automotive has also expanded its commercial dealer network, enhancing sales and service coverage across various U.S. markets. The company's Mullen THREE EV truck has become eligible for a $15,000 state rebate in Massachusetts, reducing the price for buyers.
In addition, Bollinger Motors, a subsidiary of Mullen Automotive, received EPA certification for its B4 Chassis Cab, a Class 4 electric commercial truck, and secured a deal to supply Momentum with 80 of these trucks. The Bollinger B4 Chassis Cab is expected to launch in the latter half of 2024.
These are recent developments that highlight Mullen's commitment to innovation and its strategic approach to expanding its footprint in the EV market.
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