Mullen Automotive Stock News: MULN rises 2% after management appeal NASDAQ delisting


  • NASDAQ exchange sent Mullen notice of delisting.
  • The delisting of MULN could happen as soon as September 15. 
  • Mullen is attempting to appeal the delisting decision and gain six months to comply.
  • Failing to maintain the MULN share price above $1 is the reason for the delisting.

Mullen Automotive (MULN) stock has gained 2.2% to $0.4340 at Friday’s open. Part of the reason appears to be encouragement that Mullen management is fighting back against NASDAQ’s delisting announcement by attempting to appeal the decision.

The NASDAQ Composite is up 0.3% at the start of Friday's session despite NASDAQ 100 futures trending lower in the premarket. 

Mullen stock news: Michery attempts to gain NASDAQ extension

Mullen management announced on Thursday that they had appealed the delisting decision to the Nasdaq Listing Qualifications Panel. The electric vehicle maker stated that they may obtain as much as 180 days to bring MULN’s share price back into compliance.

All the way back in the spring time, the NASDAQ exchange had given Mullen six months to comply with the guidelines that require listed companies to keep their share price above the $1.00 mark. Instead of immediately complying, management led by CEO David Michery diluted the stock by about 10X in order to raise more than $200 million for Mullen’s production ramp-up. 

With the MULN stock price trade down near $0.11, in early August the board of directors gave CEO David Michery the authority to perform the stock’s second reverse stock split of the year. This action gave each shareholder one share for every nine shares held previously. 

This moved the share price back to $1.00 in time to meet the NASDAQ requirement that MULN trade above the threshold for 10 consecutive sessions prior to September 5. Why Michery did not perform a 1-for-20 reverse split to be on the safe side is anyone’s guess. The chief executive even admitted at the time that his lawyers and executives wanted him to go for a 1-for-50 ratio.

In May of this year, the company had already completed a 1-for-25 reverse split to raise its share price value. That reversal pushed the share price from $0.06 to about $1.50. 

The NASDAQ Listing Qualifications Panel “has broad discretionary public interest authority, which includes the discretion to grant the Company up to an additional 180 calendar days from Sept. 5, 2023, to regain compliance,” a Mullen spokesperson said in a statement. “The Panel can also exercise that authority to apply additional or more stringent criteria for the continued listing of the Company’s common stock or suspend or delist securities. Ultimately, there is no guarantee that the Panel will grant an extension of the compliance period.”

 

Mullen Automotive FAQs

What is Mullen Automotive?

Mullen Automotive is a publicly-traded development-stage electric vehicle company based in Brea, California that typically uses outside partnerships to manufacture its vehicles. The company was founded in 2014 and currently sells self-designed electric delivery vehicles. Besides its commercial offerings, Mullen plans to begin manufacturing its Mullen FIVE EV crossover in late 2024 or early 2025. Mullen Automotive went public on the NASDAQ exchange through a reverse merger in late 2021.

Who is the team behind Mullen Automotive?

David Michery has been the company’s CEO since he founded and incorporated the company in 2014. The existing company came from the merging of CODA Automotive and Mullen Motor Cars through acquisition. Michery is joined by Chief Financial Officer Jonathan New, Chief Commercial Officer John Schwegman and President of the Automotive Division Calin Popa.

What vehicles does Mullen Automotive currently offer?

Through a partnership with Randy Marion Automotive Group, Mullen distributes its Mullen One delivery van that has an electric range of 110 miles. Through an agreement with a Chinese manufacturer and distributor based in Ireland, the company also distributes the Mullen-GO Commercial Urban Delivery EV in Europe. In July 2023, Mullen will begin commercial production at its facility in Mississippi of its Class 3 EV Cab Chassis long-haul truck for immediate delivery. Through its 60% ownership stake in Bollinger Motors, Mullen will also reap the benefits of that company’s B1 SUV and B2 pickup truck, as well as other commercial vehicles in the future. The Mullen FIVE crossover vehicle is not slated for production until at least late 2024, but it is already taking reservations.

Why does MULN stock trade for such a low share price?

Mullen has been diluting its stock since going public in late 2021. This is because the company as of yet currently has little revenue from operations and no profits. The stock has fallen over 99% since the company’s reverse merger in November 2021, and the rapid dilution is mostly to blame. Taking into account Mullen’s 1-for-25 reverse stock split on May 4, 2023, Mullen had 33,338,727 shares outstanding on September 30, 2022, but 126,281,274 shares on March 31, 2023. The company is allowed to sell up to 200 million shares under current authorization.

 

Mullen stock forecast

Mullen stock is at the very least holding steady above $0.39. That was the price where MULN discovered support on August 23. There is no reason to think that the share price will recover since it has mostly been in a downtrend for the past five years.

However, expect the share price to increase unnaturally if management is once again given an extension by NASDAQ’s committee. Michery will certainly use it to perform another reverse split. 

MULN daily chart

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays below 1.0700 after upbeat US PMI data

EUR/USD stays on the back foot and trades in negative territory below 1.0700 as the US Dollar benefits from upbeat data in the American session. S&P Global reported that the economic activity in the US private sector continued to expand at a robust pace in June.

EUR/USD News

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD drops to fresh multi-week low below 1.2650

GBP/USD remains under bearish pressure and trades at its lowest level since mid-May below 1.2650. The stronger-than-forecast Manufacturing and Services PMI data from the US helps the USD hold its ground and causes the pair to stretch lower.

GBP/USD News

Gold drops below $2,340 as US yields rebound

Gold drops below $2,340 as US yields rebound

Gold loses its traction and trades deep in the red below $2,340 in the second half of the day on Friday. The benchmark 10-year US Treasury bond yield pushes higher following the upbeat PMI data from the US, weighing on XAU/USD.

Gold News

Bitcoin retraces to crucial support

Bitcoin retraces to crucial support

Bitcoin price encounters resistance at weekly highs before retracing to seek support at a crucial level, while Ethereum and Ripple align closely with Bitcoin's movements, gearing up to surpass resistance barriers and embark on upward rallies.

Read more

Week ahead – US PCE inflation the highlight of a relatively light agenda

Week ahead – US PCE inflation the highlight of a relatively light agenda

Core PCE inflation to test bets of two Fed rate cuts in 2024. Yen awaits BoJ Summary of Opinions, Tokyo CPI. Canadian CPI data also enters the spotlight.

Read more

Forex MAJORS

Cryptocurrencies

Signatures