Mullen Automotive Inc (NASDAQ:MULN) announced Wednesday that the electric automaker will effect a 1-for-25 reverse stock split of its common stock, par value $0.001 per share. The company announced the split will become effective on May 4, 2023, at 12:01 a.m.
Mullen’s management was vocal about avoiding a reverse split until all compliance extensions run out.
The split is intended to bring the Company into compliance with the $1.00 minimum bid price requirement for maintaining its listing on Nasdaq. However, there is no guarantee the Company will meet the minimum bid price requirement.
At the Company’s reconvened Special Meeting of Stockholders held on January 19, 2023, the Company’s stockholders approved a proposal to authorize a reverse stock split of the Company’s Common Stock, at a ratio within the range of 1-for-2 to 1-for-25. The Company’s board of directors approved a 1-for-25 reverse split ratio Wednesday May 3rd.
The 1-for-25 reverse stock split will automatically combine and convert 25 current shares of the Company’s Common Stock into one issued and outstanding share of Common Stock. The Reverse Stock Split will not change the par value of the Common Stock nor the authorized number of shares of Common Stock, preferred stock or any series of preferred stock.
No fractional shares will be issued in connection with the Reverse Stock Split. All fractional shares will be rounded up to the nearest whole share.
Mullen’s Common Stock will continue to trade on The Nasdaq Capital Market (“Nasdaq”) under the existing symbol “MULN” and will begin trading on a split-adjusted basis when the market opens on May 4, 2023.
Shares of MULN are down 18.15% in afternoon trading on Wednesday.