Mullen Automotive Announces Third Reverse Stock Split and Increase in Class 3 Vehicle Deliveries
Mullen Automotive, an electric vehicle company, experienced a significant boost in its shares, with a whopping 79% increase to $14.32. This surge came after the completion of its third reverse stock split for the year. Furthermore, Mullen proudly announced the delivery of an additional 38 Class 3 vehicles to the esteemed Randy Marion Automotive Group.
The shares of Mullen Automotive have witnessed a drastic decline of more than 99% over the course of this year. However, Mullen remains optimistic about its future prospects, as it stated that the production of Class 3 vehicles has seen a significant ramp-up.
The decision to implement the reverse stock split was not an easy one for Chief Executive David Michery, who acknowledged the dilutive impact previous reverse stock splits had on shareholders. Michery also highlighted the importance of staying listed on Nasdaq to prevent potential delisting due to non-compliance with the $1 bid price requirement.
Initially, there was resistance from stockholders regarding the reverse split proposal, leading to an adjournment of a stockholder meeting on December 15. However, the proposal was ultimately approved on Monday, and the 1-for-100 reverse split will be effective as of Thursday.
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