Mullen Automotive Announces Elimination of Approximately $13 Million in Debt, with Less than $10 Million of Debt Remaining

Rhea-AI Summary

Mullen Automotive has successfully eliminated $13 million in debt, significantly reducing its total debt from over $30 million last year to under $10 million. This strategic move is expected to save the company more than $3.5 million in interest expenses. CEO David Michery emphasized the importance of these financial improvements in fostering investor confidence and advancing the company's electric vehicle innovations. With a stronger balance sheet, Mullen is poised for continued growth and success in the EV market.

Positive

• Eliminated $13 million in debt.
• Reduced total debt from over $30 million to under $10 million.
• Projected savings of more than $3.5 million in interest expenses.
• Strengthened financial health that may enhance investor confidence.

Negative

• None.

Conversion to save Company more than $3.5 million in interest expense and eliminate debt service obligations, further improving overall financial health

BREA, Calif., Nov. 02, 2022 (GLOBE NEWSWIRE) -- via InvestorWire -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer, announces today that it has eliminated $13 million in company debt and has reduced its overall indebtedness from more than $30 million last year to a current estimate of less than $10 million.

Mullen continues to strengthen its financial balance sheet with the recent elimination of approximately $13 million dollars in company debt, which was associated with a debt obligation to Esousa Holdings, LLC. It is anticipated that this debt conversion will save the Company more than $3.5 million in interest expenses.

Mullen continues to maintain its good financial health, with now less than an estimated $10 million approximately left of outstanding indebtedness. This elimination of and reduction in debt is significant, considering the overall debt balance at the end of 2021 was over $30 million.

“It’s been a great year for Mullen Automotive; we’ve made tremendous strides on all fronts, including significantly improving our financial health,” said David Michery, CEO and chairman of Mullen Automotive. “Continuing our goal of being debt-free is a main focus and provides us with a strong path forward for our EV innovation and programs, securing investor confidence and overall company health.”

About Mullen
Mullen Automotive is a Southern California-based automotive company building the next generation of premium electric vehicles (“EVs”) that are affordable and built entirely in the United States. With an end-to-end ecosystem that supports owners from test driving to financing and servicing through a unique hybrid dealership model, customers are supported through every aspect of EV ownership. The Mullen FIVE, the Company’s first electric crossover, is slated for delivery in 2024 and features an award-winning design and its patented PERSONA technology that utilizes facial recognition to personalize the driving experience for every individual. To learn more about the company, visit www.MullenUSA.com.

Forward-Looking Statements
Certain 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 the actual amount of the total remaining debt on the Company’s balance sheet, whether the stock conversion that reduced the indebtedness will prove beneficial to the Company, whether Mullen’s good financial health will continue and whether the Company will be successful in its efforts to strengthen its financial balance sheet. Additional examples of such risks and uncertainties include but are not limited to: (i) Mullen’s ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Mullen's ability to maintain existing, and secure additional, contracts with manufacturers, parts and other service providers relating to its business; (iii) Mullen’s ability to successfully expand in existing markets and enter new markets; (iv) Mullen’s ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unanticipated operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) adverse effects of increased competition on Mullen’s business; (viii) changes in government licensing and regulation that may adversely affect Mullen’s business; (ix) the risk that changes in consumer behavior could adversely affect Mullen’s business; (x) Mullen’s ability to protect its intellectual property; and (xi) local, industry and general business and economic conditions. 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) 613-1900
www.MullenUSA.com

Wire Service Contact:
InvestorWire (IW)
Los Angeles, California
www.InvestorWire.com
212.418.1217 Office
Editor@InvestorWire.com

FAQ

What is Mullen Automotive's current debt status as of November 2022?

As of November 2022, Mullen Automotive has reduced its total debt to under $10 million after eliminating $13 million in debt.

How much interest expense will Mullen Automotive save with the recent debt elimination?

Mullen Automotive anticipates saving more than $3.5 million in interest expenses.

What was Mullen Automotive's debt level at the end of 2021?

At the end of 2021, Mullen Automotive's debt level was over $30 million.

Who is the CEO of Mullen Automotive mentioned in the press release?

The CEO of Mullen Automotive mentioned in the press release is David Michery.

What is Mullen Automotive's focus for future growth?

Mullen Automotive's focus for future growth is on becoming debt-free and advancing its electric vehicle innovations.