Mullen CEO David Michery Releases Statement Addressing Shareholder Inquires

Rhea-AI Summary

Mullen Automotive (NASDAQ: MULN), an emerging electric vehicle manufacturer, provided updates on March 16, 2023, addressing investor inquiries. The company anticipates Class 1 EV deliveries to commercial customers by the end of March 2023, linked to a previous order of 6,000 EV cargo vans valued at $200 million from Randy Marion Isuzu. As of February 28, 2023, Mullen reported cash and equivalents of $87.4 million and expects an additional $110 million from firm commitments by June 1, 2023. CEO David Michery expressed confidence in the company's plans to deliver vehicles and progress with the Mullen FIVE program, targeting continued development and production.

Positive

• Anticipates Class 1 EV deliveries by end of March 2023.
• Secured a $200 million order for 6,000 EV cargo vans.
• Reported cash and equivalents of $87.4 million as of February 28, 2023.
• Expected additional cash commitments of $110 million by June 1, 2023.

Negative

• Risks associated with delivery timelines for Class 1 EVs may impact revenue.
• Dependence on additional financing raises concerns about operational sustainability.
• Market competition could adversely affect Mullen's growth and profitability.

BREA, Calif., March 16, 2023 (GLOBE NEWSWIRE) -- via InvestorWire -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer, releases a statement today from its CEO David Michery addressing recent investor inquires.

The Company addresses certain investor inquires as follows:

Product Delivery
Mullen anticipates making Class 1 EV deliveries to various commercial customers before the end of March 2023 in connection with the customer orders referenced below.

Customer Orders
On Dec. 14, 2022, Mullen announced a purchase order from Randy Marion Isuzu, LLC, a member of the Randy Marion Automotive Group, for 6,000 Class 1 EV Cargo Vans. This transaction is valued at approximately $200 million.

Capital Position
As of Feb. 28, 2023, Mullen has $87,400,009 of cash and cash equivalents, including restricted cash, and Mullen expects to receive an additional $110 million from firm commitments by June 1, 2023.

The Company believes the combination of cash on hand and expected firm cash commitments provides it enough capital to execute on its business plan over the next 12 months.

“I believe we have all the pieces in place between our product, factories and strategic expertise to execute on our plans to deliver our Class 1 and Class 3 vehicles this year,” said David Michery, CEO and chairman of Mullen Automotive. “Furthermore, we continue to invest and move at a fast clip with the Mullen FIVE program, which will soon be approaching vehicle engineering freeze, allowing us to move into the next phase of the crossover program.”

About Mullen
Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of electric vehicles (“EVs”) that will be manufactured in its two United States-based assembly plants. Mullen's EV development portfolio includes the Mullen FIVE EV Crossover, Mullen I-GO Commercial Urban Delivery EV, Mullen Commercial Class 1-3 EVs and Bollinger Motors, which features both the B1 and B2 electric SUV trucks and Class 4-6 commercial offerings. On Sept. 7, 2022, Bollinger Motors became a majority-owned EV truck company of Mullen Automotive, and on Dec. 1, 2022, Mullen closed on the acquisition of all of Electric Last Mile Solutions' (“ELMS”) assets, including all IP and a 650,000-square-foot plant in Mishawaka, Indiana.

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 whether the expected timing for delivery of the Class 1 EV to various commercial customers will materialize, whether the referenced Randy Marion Isuzu, LLC, a member of the Randy Marion Automotive Group, purchase orders for the 6,000 Class 1 EV Cargo Vans will be successfully consummated and yield the expected transaction value to the Company, whether the cash on hand and expected firm cash commitments will in fact be sufficient to execute on the Company’s  business plan over the next 12 months, whether the additional $110 million from prior commitments will materialize by June 1, 2023, or at all, whether the Class 1 and Class 3 vehicles will be delivered within the expected timeframes this year, whether the Mullen FIVE program will progress within the anticipated timelines, how the Company’s stock will perform and whether the Company will be required to implement a reverse stock split to regain compliance with Nasdaq’s minimum bid requirement, sooner than anticipated. 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

Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com

FAQ

What is Mullen Automotive's stock symbol?

Mullen Automotive is traded under the stock symbol MULN.

When will Mullen deliver its Class 1 EVs?

Mullen anticipates Class 1 EV deliveries to commercial customers by the end of March 2023.

How much cash does Mullen have as of February 2023?

As of February 28, 2023, Mullen reported $87.4 million in cash and cash equivalents.

What is the value of Mullen's order with Randy Marion Isuzu?

The purchase order from Randy Marion Isuzu for 6,000 Class 1 EV cargo vans is valued at approximately $200 million.

What additional funding does Mullen expect by June 2023?

Mullen expects to receive an additional $110 million from firm commitments by June 1, 2023.