Nasdaq Approves 180-Day Extension for Mullen Automotive to Meet Minimum $1 Bid Price

Rhea-AI Summary

Mullen Automotive (NASDAQ: MULN) has received a 180-day extension from Nasdaq to meet the minimum $1 bid price requirement after failing to do so previously. The deadline to comply is September 5, 2023. Mullen's stock must trade above $1 for at least 10 consecutive business days to avoid a reverse stock split, a measure that the company plans to implement if compliance is not achieved. CEO David Michery emphasized the company's commitment to regain compliance. Mullen Automotive's portfolio includes various electric vehicles, with the Mullen FIVE slated for delivery in 2024.

Positive

• Received a 180-day extension from Nasdaq to meet the minimum bid price requirement.
• Plans to deliver the Mullen FIVE EV Crossover in 2024, indicating progress in product development.

Negative

• Stock has not met the minimum $1 bid price requirement since September 2022.
• Failure to regain compliance by the deadline may lead to a reverse stock split, which could negatively impact shareholders.

Company Has Until Sept. 5, 2023, to Cure the Minimum Bid Price Deficiency

BREA, Calif., March 08, 2023 (GLOBE NEWSWIRE) -- via InvestorWire -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer, announces today that Nasdaq has approved the Company’s request for a 180-day extension to meet the $1 minimum bid price requirement.

On Sept. 7, 2022, Nasdaq provided notice to the Company that, based on the previous 30 consecutive business days, the Company’s listed common stock no longer met the minimum $1 bid price per share requirement as set forth in Nasdaq Listing Rule 5810(c)(3)(A)(ii) (the “Deficiency”). The Company was provided 180 calendar days, or until March 6, 2023, to regain compliance.

If Mullen stock fails to trade above $1 for a minimum of 10 consecutive business days prior to Sept. 5, 2023, the Company will implement a reverse stock split to cure the Deficiency prior to the expiration of the additional 180-day compliance period.

“Consistent with my message to our shareholders, we will use our best efforts to regain compliance to meet Nasdaq’s requirement for a $1 minimum bid price," said David Michery, CEO and chairman of Mullen Automotive.

About Mullen

Mullen Automotive (NASDAQ: MULN) 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. Through an end-to-end ecosystem that supports owners from test driving to financing and servicing via a unique hybrid dealership model, customers are supported through every aspect of EV ownership. Mullen's EV development portfolio includes the Mullen FIVE EV Crossover, Mullen Commercial Class 1-6 EVs and Bollinger Motors, which features both B1 and B2 electric SUV trucks and commercial offerings. 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. 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 Electric Last Mile Solutions' (“ELMS”) assets, including 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 Company will be successful with its efforts to regain compliance with Nasdaq’s minimum $1 bid price without effecting a reverse stock split and the timing when the Company may elect to implement a reverse stock split if so decided or required. 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 deadline does Mullen Automotive have to meet Nasdaq's minimum bid price requirement?

Mullen Automotive has until September 5, 2023, to meet the minimum bid price requirement.

What happens if Mullen's stock does not recover above $1?

If Mullen's stock fails to trade above $1 for at least 10 consecutive business days before the deadline, the company will implement a reverse stock split.

What is the significance of the reverse stock split for Mullen Automotive?

A reverse stock split could reduce the number of shares outstanding and increase the stock price, but it may also negatively impact shareholder value.

When is the Mullen FIVE scheduled for delivery?

The Mullen FIVE is scheduled for delivery in 2024.

How did Nasdaq notify Mullen about the minimum bid price deficiency?

Nasdaq notified Mullen Automotive on September 7, 2022, regarding the deficiency based on stock performance over 30 consecutive business days.