Mullen Automotive To Initiate A Reverse Stock Split

On October 26, 2023, Mullen Automotive received approval from the Nasdaq Hearings Panel to maintain its listing on The Nasdaq Capital Market, contingent upon fulfilling specific conditions. Firstly, the company must ensure that its stock maintains a closing bid price of at least $1 per share for 20 consecutive trading days by January 22, 2024.

Mullen intends to achieve and uphold compliance with Nasdaq’s minimum $1 bid price through its business plan and would only consider a reverse stock split if necessary for Nasdaq listing retention. Additionally, by March 8, 2024, the company is required to hold an annual shareholder meeting that satisfies Nasdaq Listing Rule 5620(a) to enable stockholders to engage with management. This obligation arises from the previous meeting held on August 3, 2023, not meeting the necessary criteria, and Mullen plans to address this by hosting a combined annual meeting for 2023 and 2024.

What Next For Mullen Automotive?

Mullen Automotive recently submitted a preliminary proxy statement to the SEC on October 19, 2023. This filing pertains to an upcoming special meeting of stockholders scheduled for December 15, 2023. The primary agenda of this meeting is to seek authorization for a potential reverse stock split of the company’s common stock, which could range from a ratio of 1-for-2 to 1-for-100. The purpose of this proposed action is to ensure that the share price remains at or above $1.

It’s important to note that the final decision on the specific split ratio will be determined by the Board of Directors following stockholder approval. The Board retains the flexibility to either proceed with, abandon, delay, or postpone the reverse stock split as deemed appropriate. Importantly, this proposed action will not impact stockholders’ ownership or voting power, except for the potential conversion of fractional shares.

The successful execution of the reverse stock split is contingent upon market conditions and securing approval from the stockholders, with no guaranteed outcome regarding the intended outcomes. The Board holds the authority to discontinue the process if it no longer aligns with the best interests of the Company and its stockholders.

Mullen To Initiate 3rd Stock Reverse Split In a Year

Mullen Automotive if it initiates a reverse stock split after its stockholders meet in December, this will be the third reverse stock of the year. The company previously announced reverse stock splits at ratios of 1-for-100 and 1-for-40 in March and August, respectively.

Mullen Automotive has stated that the reverse stock split is necessary to maintain compliance with the Nasdaq listing requirements. The Nasdaq requires listed companies to have a minimum share price of $1.00. Mullen’s stock price has been trading below $1.00 for several months.


The reverse stock split is necessary from Mullen’s perspective. It will help the stock price to regain $1 compliance of Nasdaq. It could also make the stock more attractive for the investors and also lead to a decrease in the liquidity of the stock. However, it must be noted that Reverse stock splits are often seen as a negative sign for a company, as they can be seen as a way to artificially inflate the stock price.