Mullen Automotive Inc. has announced a strategic 1-for-100 reverse stock split, scheduled to take effect on June 2, 2025, aimed at meeting Nasdaq's minimum bid price requirement of $1.00 per share. The corporate action, approved by shareholders on May 21 and finalized by the board of directors, represents a critical step in maintaining the company's public trading status.
The reverse stock split will dramatically reduce Mullen's outstanding common shares from approximately 80 million to roughly 800,000. Investors holding the stock will see their share quantities proportionally adjusted, with no fractional shares to be issued. Trading will continue under the existing ticker symbol, ensuring minimal disruption to current shareholders.
This financial maneuver is crucial for Mullen Automotive, a Southern California-based electric vehicle manufacturer, as it seeks to comply with Nasdaq's listing standards. By consolidating its shares, the company aims to potentially increase its stock price and demonstrate financial stability to investors and market regulators.
Notably, the reverse split will proportionally adjust all existing equity instruments and convertible securities, with the exception of the 2022 Equity Incentive Plan, which will remain unchanged. This approach ensures that the fundamental economic interests of existing shareholders are preserved during the recapitalization process.
The timing of this split coincides with Mullen's ongoing expansion in the commercial electric vehicle market. The company has already begun commercial vehicle production in its Tunica, Mississippi facility and has secured important certifications for its Mullen ONE cargo van and Mullen THREE truck models. These vehicles have received California Air Resource Board and EPA certifications, positioning Mullen competitively in the growing electric vehicle sector.
With a recently expanded dealer network spanning key markets across the United States and the achievement of Foreign Trade Zone status for its Mississippi manufacturing center, Mullen Automotive is strategically positioning itself for potential growth. The reverse stock split represents a financial restructuring effort that could help the company attract additional investment and maintain its presence in the competitive electric vehicle marketplace.
