Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer, today shares an open letter to shareholders from CEO David Michery, providing updates on various matters and Company initiatives.
We have achieved meaningful strides since our last update to shareholders on Sept. 27, 2023.
Recent Company highlights include:
Start of manufacturing commenced on Nov. 1, 2023, at the Tunica Assembly plant for Class 1 cargo vans. The Environmental Protection Agency (“EPA”) has notified Mullen that its Certificate of Conformity can be expected to arrive by Friday, Nov. 3, 2023. We expect to meet our previously announced targets of 300 cargo vans delivered during calendar 2023 and 6,000 cargo vans delivered in calendar 2024.
On Oct. 26, 2023, Mullen Automotive was granted permission by the Nasdaq Hearings Panel to continue its listing on The Nasdaq Capital Market. This is contingent on meeting the following conditions:
- On or before Jan. 22, 2024, the Company’s stock maintains a closing bid price of $1 per share for 20 consecutive trading days. The Company intends to continue to implement its business plan to regain and maintain compliance with Nasdaq’s $1 minimum bid price and will only effectuate a reverse stock split if required to remain listed on Nasdaq.
- By Mar. 8, 2024, the Company must hold an annual shareholder meeting that satisfies Nasdaq Listing Rule 5620(a), allowing stockholders to discuss Company affairs with management. This is necessary, as the previous meeting held on Aug. 3, 2023, did not meet the required criteria. To achieve compliance, Mullen plans to hold a combined 2023 and 2024 annual meeting.
On Oct. 9, 2023, we appointed Marianne McInerney as Chief Strategy Officer. McInerney, with nearly two decades of experience in the automotive and transportation industry, will focus on growth opportunities and strategic initiatives for Mullen’s commercial and consumer vehicles, as well as governmental affairs.
As mentioned in late September, the Company received federal EPA certification on Sept. 22, 2023, for the Class 3 vehicle, and IRS approval as a "qualified manufacturer" on Sept. 14, 2023, making Mullen’s Class 3 vehicles eligible for up to $7,500 in federal EV tax credits.
On Oct. 23, 2023, Mullen provided an update on a lawsuit filed on Aug. 29, 2023, in the Southern District of New York against TD Ameritrade, Charles Schwab, National Finance Services and others. The lawsuit alleges stock manipulation and unlawful stock trading practices. The legal action seeks compensatory damages and injunctive relief for violations of Section 10b and Rule 10b-5 under the Securities Exchange Act of 1934. Mullen's legal representatives express optimism about exposing the alleged wrongful conduct of the defendants and seek to protect the rights of Mullen and its shareholders. The Company is determined to pursue all available remedies to safeguard its interests and those of its shareholders.
Mullen Automotive filed a preliminary proxy statement on Oct. 19, 2023, with the SEC for a special stockholders' meeting on Dec. 15, 2023, to authorize a potential reverse stock split of its common stock (1-for-2 to 1-for-100) to maintain a share price of at least $1. The Board will decide the final split ratio after stockholder approval, with the option to abandon, delay or postpone the reverse stock split. It will not affect stockholders' ownership or voting power, except for fractional share conversion. The completion of the reverse stock split is subject to market conditions and stockholder approval, with no guarantees of the intended effects. The Board can choose not to proceed if it's no longer in the Company's or stockholders' best interests.
As of Oct. 31, 2023, Mullen has repurchased 5.7 million shares of its common stock as part of our $25 million buyback program which began on Aug. 16, 2023, and is authorized through Dec. 31, 2023. Currently, Mullen is in a black-out period until one full trading day after filing our 10K which is expected to be filed on or before Dec. 29, 2023. Mullen plans to extend the buyback program for an additional six months.
On Sept. 28, 2023, Mullen announced the delivery of the first 10 Class 3 EV Cab Chassis Trucks to Randy Marion Automotive Group. These 10 vehicles are part of a purchase order for 1,000 Class 3 vehicles, valued at $63 million, originally placed in May 2023. An additional 140 units are planned for delivery by the end of 2023, with the remaining 850 vehicles expected to be delivered throughout 2024.
Over the past few months, the Company has reached critical milestones towards accomplishing our ultimate goal to be a leader in the EV industry. We remain steadfastly dedicated to our employees, stakeholders and customers during this journey and thank you for your continued support of Mullen.
David Michery, CEO