Mullen Repurchased 5.7 million Shares Of Its Common Stock
By October 31, 2023, Mullen had successfully repurchased 5.7 million shares of its common stock under the $25 million buyback program initiated on August 16, 2023. This program is authorized to continue until December 31, 2023.
Recently Mullen CEO David Michery provided updates on various matters and Company initiatives. Here are the updates provided by the Mullen Automotive CEO:
Mullen Commences Manufacturing for Class 1 Cargo Vans: Mullen initiated manufacturing operations on November 1, 2023, at the Tunica Assembly plant for Class 1 cargo vans. The Environmental Protection Agency (EPA) has informed Mullen that its Certificate of Conformity is expected to arrive by Friday, November 3, 2023. The company remains on track to achieve its previously announced goals of delivering 300 cargo vans in 2023 and 6,000 cargo vans in 2024.
Nasdaq Listing Continues: On October 26, 2023, Mullen Automotive received permission from the Nasdaq Hearings Panel to maintain its listing on The Nasdaq Capital Market.
New Chief Strategy Officer Appointed: On October 9, 2023, Marianne McInerney joined Mullen as the Chief Strategy Officer.
Federal EPA Certification and IRS Approval” Mullen secured federal EPA certification on September 22, 2023, for the Class 3 vehicle and IRS approval as a “qualified manufacturer” on September 14, 2023, making Mullen’s Class 3 vehicles eligible for up to $7,500 in federal EV tax credits.
Legal Action Update: On October 23, 2023, Mullen provided an update on a lawsuit filed on August 29, 2023, against TD Ameritrade, Charles Schwab, National Finance Services, and others. The legal action alleges stock manipulation and unlawful stock trading practices, seeking compensatory damages and injunctive relief. Mullen’s legal representatives are optimistic about exposing the alleged wrongful conduct and protecting the rights of the company and its shareholders.
Proxy Statement and Potential Reverse Stock Split: Mullen Automotive filed a preliminary proxy statement on October 19, 2023, with the SEC for a special stockholders’ meeting on December 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 final split ratio will be determined 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.
Share Repurchase Program Extension: As of October 31, 2023, Mullen has repurchased 5.7 million shares of its common stock as part of a $25 million buyback program, authorized through December 31, 2023. Mullen plans to extend the buyback program for an additional six months.
Delivery of Class 3 EV Cab Chassis Trucks: On September 28, 2023, Mullen announced the delivery of the first 10 Class 3 EV Cab Chassis Trucks to Randy Marion Automotive Group, part of a larger purchase order for 1,000 Class 3 vehicles valued at $63 million. An additional 140 units are set for delivery by the end of 2023, with the remaining 850 vehicles expected throughout 2024.
Mullen has achieved crucial milestones in its quest to be a leader in the EV industry over the past few months. The company expresses dedication to its employees, stakeholders, and customers while appreciating their continued support throughout this journey. The stock price however remains a matter of concern for the company. MULN is currently trading marginally above $0.30.