Mullen Automotive Enters Into Settlement Agreement with GEM Group

Rhea-AI Summary

Mullen Automotive (NASDAQ: MULN) has reached a settlement agreement with GEM Group on May 9, 2025, following four years of litigation. Under the agreement, GEM has been granted a 55-day due diligence period to evaluate the potential transfer of Mullen's Mishawaka assets as complete satisfaction of the judgment. During this period, which can be extended by GEM, all collection activities have been suspended.

While this settlement process is ongoing, Mullen continues to focus on expanding its manufacturing capabilities at its Tunica, Mississippi facility to meet current and future demand for its electric vehicle product lines. CEO David Michery expressed optimism about the resolution and the company's growth prospects for the remainder of 2025 and beyond.

Positive

• Settlement agreement reached after 4 years of litigation, providing clarity on the dispute resolution
• All collection activities suspended during the due diligence period
• Company continues operations and expansion of Tunica manufacturing facility

Negative

• Potential loss of Mishawaka assets to GEM Group as part of settlement
• 55-day due diligence period could be extended, prolonging uncertainty
• Settlement indicates significant financial obligations to GEM that required major asset consideration

• On May 9, 2025, Company executed a settlement agreement with GEM Group.

• Under terms of the settlement agreement, GEM has a 55-day due diligence period, subject to extension by GEM, to evaluate the transfer to GEM of the Mishawaka assets in complete satisfaction of the judgement.

• All collection activities have been suspended for the duration of the due diligence period.

• Mullen continues to build its business and expand its existing Tunica, Mississippi, manufacturing capabilities to meet near and long-term demands for its multiple product lines.
  

BREA, Calif. / NEW YORK, May 13, 2025 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, announces today that it has executed a settlement agreement with GEM Yield Bahamas Limited and GEM Global Yield LLC SCS (together, “GEM”).

• On May 9, 2025, Company executed a settlement agreement with GEM Group.

• Under terms of the settlement agreement, GEM has a 55-day due diligence period, subject to extension by GEM, to evaluate the transfer to GEM of the Mishawaka assets in complete satisfaction of the judgement.

• All collection activities have been suspended for the duration of the due diligence period.

• Mullen continues to build its business and expand its existing Tunica, Mississippi, manufacturing capabilities to meet near and long-term demands for its multiple product lines.

“After four years of litigation we have executed a settlement agreement which provides a path forward to a full resolution with GEM and puts this matter behind us,” said David Michery, CEO and chairman of Mullen Automotive. “I look forward to a great rest of 2025 and continued growth thereafter.”

About Mullen
Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of commercial electric vehicles (“EVs”) with two United States-based vehicle plants located in Tunica, Mississippi, (120,000 square feet) and Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen began commercial vehicle production in Tunica. As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are California Air Resource Board (“CARB”) and EPA certified and available for sale in the U.S. The Company’s commercial dealer network consists of seven dealers, which includes Papé Kenworth, Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group, Eco Auto, and Randy Marion Auto Group, providing sales and service coverage in key West Coast, Midwest, Pacific Northwest, New England, and Mid-Atlantic markets.

In September 2022, Bollinger Motors, of Oak Park, Michigan, became a majority-owned EV truck company of Mullen Automotive. Bollinger Motors has passed numerous milestones including its B4, Class 4 electric truck production launch on Sept. 16, 2024, and the development of a world-class dealer and service network with over 50 locations across the United States.

To learn more about the Company, visit www.MullenUSA.com.

Forward-Looking Statements
Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as "continue," "will," "may," "could," "should," "expect," "expected," "plans," "intend," "anticipate," "believe," "estimate," "predict," "potential" and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Mullen and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to, the outcome of GEM’s due diligence and whether the proposed settlement will be implemented. Additional examples of such risks and uncertainties include but are not limited to: (i) Mullen’s ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Mullen's ability to maintain existing, and secure additional, contracts with manufacturers, parts and other service providers relating to its business; (iii) Mullen’s ability to successfully expand in existing markets and enter new markets; (iv) Mullen’s ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unanticipated operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) adverse effects of increased competition on Mullen’s business; (viii) changes in government licensing and regulation that may adversely affect Mullen’s business; (ix) the risk that changes in consumer behavior could adversely affect Mullen’s business; (x) Mullen’s ability to protect its intellectual property; and (xi) local, industry and general business and economic conditions. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed by Mullen with the Securities and Exchange Commission. Mullen anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Mullen assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Mullen’s plans and expectations as of any subsequent date.

Contact:
Mullen Automotive, Inc.
+1 (714) 613-1900
www.MullenUSA.com

Corporate Communications
IBN
Austin, Texas
www.InvestorBrandNetwork.com
512.354.7000 Office
Editor@InvestorBrandNetwork.com

FAQ

What are the terms of Mullen Automotive's (MULN) settlement agreement with GEM Group?

The settlement agreement gives GEM Group a 55-day due diligence period to evaluate the transfer of Mullen's Mishawaka assets as complete satisfaction of the judgment, with all collection activities suspended during this period.

How long has the legal dispute between Mullen Automotive and GEM Group been ongoing?

The legal dispute between Mullen Automotive and GEM Group has been ongoing for four years before reaching this settlement agreement on May 9, 2025.

What manufacturing facilities does Mullen Automotive (MULN) currently operate?

Mullen Automotive operates manufacturing facilities in Tunica, Mississippi, which it is expanding, and Mishawaka (though the Mishawaka assets are currently subject to potential transfer to GEM Group).

What impact will the GEM Group settlement have on Mullen Automotive's operations?

While Mullen may lose its Mishawaka assets, the company continues to build its business and expand its Tunica, Mississippi manufacturing capabilities to meet product demand.