NASDAQ has provided Mullen Automotive (NASDAQ:MULN) with an extended deadline to keep its share price above $1 until January 22, 2024. This extension comes alongside a requirement for the electric vehicle company to hold an annual shareholder meeting by March 8, 2024.
In response to these developments, CEO David Michery has planned a meeting for December 15, 2023, where he will propose a reverse stock split with potential ratios ranging from 1-for-2 to 1-for-100. This proposal follows a previously unsuccessful 1-for-9 reverse split in late August of this year, which did not sustain the company's share price above the $1 mark.
Mullen Automotive, established in 2014 by David Michery, is a California-based firm that manufactures its unique electric delivery vehicles in partnership with external collaborators. The company has announced plans to roll out the Mullen FIVE EV crossover towards the end of 2024 or early 2025.
The company made its debut on the public market through a reverse merger in late 2021. Since then, rapid stock dilution following its listing has largely contributed to the declining share price. By March this year, Mullen had amplified its outstanding shares from 33,338,727 in September 2022 to a staggering 126,281,274. The company currently holds authorization to sell up to a maximum of 200 million shares.
Michery leads a robust team at Mullen Automotive comprising CFO Jonathan New, CCO John Schwegman, and Calin Popa who serves as President of the Automotive Division.
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