Mullen Automotive Inc. Announces Reverse Stock Split Effective June 2, 2025
Mullen Automotive (NASDAQ: MULN) has announced a 1-for-100 reverse stock split effective June 2, 2025, at 12:01 a.m. Eastern Time. The primary goal is to comply with Nasdaq's $1.00 minimum bid price requirement for continued listing. The company's stockholders previously approved a reverse split range of 1-for-2 to 1-for-250 at a Special Meeting on May 21, 2025.
The reverse split will automatically convert every 100 current shares into one new share, reducing the outstanding Common Stock from approximately 80 million to 800 thousand shares. The stock will continue trading under the MULN symbol with a new CUSIP number (62526P802). Proportional adjustments will be made to equity awards, warrants, convertible notes, and preferred stock conversion prices. No fractional shares will be issued, with all fractions rounded up to the nearest whole share.
Stockholders will not need to take any action, as positions will be automatically adjusted through their brokers or the transfer agent, Continental Stock Transfer & Trust Company.Mullen Automotive (NASDAQ: MULN) ha annunciato un raggruppamento azionario inverso 1-per-100, che entrerà in vigore il 2 giugno 2025 alle 00:01 ora Eastern Time. L'obiettivo principale è rispettare il requisito minimo di prezzo di offerta di $1,00 imposto da Nasdaq per la permanenza in quotazione. Gli azionisti della società avevano precedentemente approvato un intervallo di raggruppamento inverso da 1-per-2 a 1-per-250 durante un'Assemblea Straordinaria il 21 maggio 2025.
Il raggruppamento trasformerà automaticamente ogni 100 azioni attuali in una nuova azione, riducendo il numero di azioni ordinarie in circolazione da circa 80 milioni a 800 mila. Le azioni continueranno a essere negoziate con il simbolo MULN, ma con un nuovo numero CUSIP (62526P802). Verranno effettuate regolazioni proporzionali a premi azionari, warrant, note convertibili e prezzi di conversione delle azioni privilegiate. Non saranno emesse frazioni di azioni, poiché tutte le frazioni saranno arrotondate per eccesso alla quota intera più vicina.
Gli azionisti non dovranno intraprendere alcuna azione, poiché le posizioni saranno automaticamente adeguate tramite i loro broker o l'agente di trasferimento, Continental Stock Transfer & Trust Company.
Mullen Automotive (NASDAQ: MULN) ha anunciado una consolidación inversa de acciones 1 por 100, que entrará en vigor el 2 de junio de 2025 a las 12:01 a.m., hora del Este. El objetivo principal es cumplir con el requisito mínimo de precio de oferta de $1.00 de Nasdaq para mantener la cotización. Los accionistas de la compañía aprobaron previamente un rango de consolidación inversa de 1 por 2 a 1 por 250 en una reunión especial el 21 de mayo de 2025.
La consolidación convertirá automáticamente cada 100 acciones actuales en una nueva acción, reduciendo las acciones comunes en circulación de aproximadamente 80 millones a 800 mil. Las acciones seguirán cotizando bajo el símbolo MULN con un nuevo número CUSIP (62526P802). Se harán ajustes proporcionales a las concesiones de acciones, warrants, notas convertibles y precios de conversión de acciones preferentes. No se emitirán fracciones de acciones; todas las fracciones se redondearán al número entero superior más cercano.
Los accionistas no necesitarán tomar ninguna acción, ya que las posiciones se ajustarán automáticamente a través de sus corredores o del agente de transferencia, Continental Stock Transfer & Trust Company.
Mullen Automotive (NASDAQ: MULN)는 2025년 6월 2일 동부 시간 기준 오전 12시 1분에 1대 100 액면병합을 실시한다고 발표했습니다. 주요 목적은 나스닥의 $1.00 최저 입찰가 요건을 충족하여 상장 유지 요건을 만족시키기 위함입니다. 회사 주주들은 2025년 5월 21일 특별회의에서 1대 2에서 1대 250까지의 액면병합 범위를 사전에 승인했습니다.
이번 액면병합으로 현재 100주가 1주로 자동 전환되어, 보통주 발행 주식 수가 약 8천만 주에서 80만 주로 감소합니다. 주식은 MULN 심볼로 계속 거래되며, 새로운 CUSIP 번호(62526P802)가 부여됩니다. 주식 보상, 워런트, 전환사채 및 우선주 전환 가격에 대해 비례 조정이 이루어집니다. 소수 주식은 발행되지 않으며, 모든 소수점은 가장 가까운 정수로 올림 처리됩니다.
주주들은 별도의 조치를 취할 필요가 없으며, 보유 주식은 중개인이나 주식 이전 대리인인 Continental Stock Transfer & Trust Company를 통해 자동으로 조정됩니다.
Mullen Automotive (NASDAQ: MULN) a annoncé une fusion d'actions inversée au ratio de 1 pour 100, effective à partir du 2 juin 2025 à 00h01 heure de l'Est. L'objectif principal est de se conformer à l'exigence minimale de prix d'offre de 1,00 $ imposée par le Nasdaq pour le maintien de la cotation. Les actionnaires de la société avaient déjà approuvé une fourchette de fusion inverse allant de 1 pour 2 à 1 pour 250 lors d'une assemblée extraordinaire le 21 mai 2025.
Cette fusion convertira automatiquement chaque tranche de 100 actions actuelles en une nouvelle action, réduisant ainsi le nombre d'actions ordinaires en circulation d'environ 80 millions à 800 000. Les actions continueront d'être négociées sous le symbole MULN, avec un nouveau numéro CUSIP (62526P802). Des ajustements proportionnels seront appliqués aux attributions d'actions, bons de souscription, obligations convertibles et prix de conversion des actions privilégiées. Aucune action fractionnaire ne sera émise, toutes les fractions étant arrondies à l'action entière la plus proche vers le haut.
Les actionnaires n'auront aucune démarche à effectuer, leurs positions étant automatiquement ajustées via leurs courtiers ou l'agent de transfert, Continental Stock Transfer & Trust Company.
Mullen Automotive (NASDAQ: MULN) hat eine 1-zu-100 Reverse-Aktienzusammenlegung angekündigt, die am 2. Juni 2025 um 00:01 Uhr Eastern Time wirksam wird. Das Hauptziel ist die Einhaltung der Nasdaq-Anforderung eines Mindestgebotspreises von 1,00 USD für die fortgesetzte Notierung. Die Aktionäre des Unternehmens hatten zuvor auf einer Sonderversammlung am 21. Mai 2025 einen Bereich für die Reverse-Split von 1-zu-2 bis 1-zu-250 genehmigt.
Die Reverse-Split wird automatisch jeweils 100 bestehende Aktien in eine neue Aktie umwandeln, wodurch die ausstehenden Stammaktien von etwa 80 Millionen auf 800.000 reduziert werden. Die Aktie wird weiterhin unter dem Symbol MULN gehandelt, jedoch mit einer neuen CUSIP-Nummer (62526P802). Proportionale Anpassungen erfolgen bei Aktienoptionen, Warrants, Wandelanleihen und Umwandlungspreisen von Vorzugsaktien. Bruchteile von Aktien werden nicht ausgegeben; alle Bruchteile werden auf die nächsthöhere ganze Aktie aufgerundet.
Aktionäre müssen keine Maßnahmen ergreifen, da ihre Positionen automatisch über ihre Broker oder den Transferagenten Continental Stock Transfer & Trust Company angepasst werden.
- Potential compliance with Nasdaq's minimum bid price requirement, avoiding delisting risk
- No action required from stockholders for the conversion process
- Fractional shares will be rounded up, benefiting shareholders
- Significant 1-for-100 share reduction indicates severe price deterioration
- No guarantee of meeting Nasdaq's minimum bid requirement despite the reverse split
- Reverse splits often signal financial distress and can lead to negative market perception
Insights
Mullen's 1-for-100 reverse split aims to maintain Nasdaq listing but indicates serious underlying financial challenges with no guaranteed success.
Mullen Automotive's announcement of a 1-for-100 reverse stock split represents a significant financial restructuring effort with substantial implications for current shareholders. This aggressive split ratio (at the higher end of their approved 1-for-2 to 1-for-250 range) indicates severe downward price pressure on their stock. The primary purpose, explicitly stated in the release, is to achieve compliance with Nasdaq's $1 minimum bid price requirement to maintain their listing status.
The mechanics of this split will convert every 100 existing shares into 1 new share, reducing outstanding shares from approximately 80 million to 800 thousand. While this mathematically increases the stock price by 100x, it provides no fundamental change to the company's market capitalization, assets, or financial health. All fractional shares will be rounded up to the nearest whole share, which represents a minor benefit to some shareholders.
Particularly concerning is the company's explicit acknowledgment that there is "no guarantee the Company will meet the minimum bid price requirement" even after this split. This statement signals significant uncertainty about whether this drastic measure will achieve its intended purpose, suggesting management fears continued downward price pressure. Reverse splits of this magnitude are typically seen as red flags that often precede further price deterioration.
For existing shareholders, while their percentage ownership technically remains unchanged (except for fractional share rounding), reverse splits of this magnitude frequently lead to increased volatility and often signal fundamental weakness in the company's financial position. This should be viewed as a technical financial maneuver to maintain listing requirements rather than a sign of business improvement or enhanced shareholder value.
BREA, Calif., May 29, 2025 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle manufacturer, today announces that it will effect a 1-for-100 reverse stock split (“Reverse Stock Split”) of its common stock, par value
The Reverse Stock Split is primarily intended to bring the Company into compliance with the
At the Company’s Special Meeting of Stockholders held on May 21, 2025, the Company’s stockholders approved a proposal to authorize a reverse stock split of the Company’s Common Stock, at a ratio within the range of 1-for-2 to 1-for-250. The Company’s board of directors approved a 1-for-100 reverse split ratio, and the Company will file a Certificate of Amendment to its Second Amended and Restated Certificate of Incorporation to effect the Reverse Stock Split effective June 2, 2025.
The 1-for-100 Reverse Stock Split will automatically combine and convert 100 current shares of the Company’s Common Stock into one issued and outstanding share of Common Stock. Proportional adjustments also will be made to outstanding equity awards, warrants and convertible notes, and certain existing agreements pursuant to their terms; however, pursuant to the terms of the Company’s 2022 Equity Incentive Plan, as amended, the number of shares then reserved for issuance under such plan will not be adjusted based upon the Reverse Stock Split ratio. Proportionate adjustments will also be made to the per share conversion price of the Company’s series of preferred stock, pursuant to their respective terms. The Reverse Stock Split will not change the par value of the Common Stock nor the authorized number of shares of Common Stock, preferred stock or any series of preferred stock.
No fractional shares will be issued in connection with the Reverse Stock Split. All fractional shares will be rounded up to the nearest whole share. The Reverse Stock Split will affect all stockholders uniformly and will not alter any stockholder’s percentage interest in the Company’s equity (other than as a result of the rounding of shares to the nearest whole share in lieu of issuing fractional shares). Currently, prior to the Reverse Stock Split, there are approximately 80 million shares of Common Stock, which after the Reverse Stock Split, will be reduced to approximately 800 thousand shares of Common Stock.
The Company’s transfer agent, Continental Stock Transfer & Trust Company, will serve as exchange agent for the Reverse Stock Split. Registered stockholders holding pre-split shares of the Company’s Common Stock electronically in book-entry form are not required to take any action to receive post-split shares. Stockholders owning shares via a broker, bank, trust or other nominee will have their positions automatically adjusted to reflect the Reverse Stock Split, subject to such broker’s particular processes, and will not be required to take any action in connection with the Reverse Stock Split.
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 how Mullen’s stock will perform after the Reverse Stock Split, Mullen’s ability to timely implement the Reverse Stock Split, the success of the Reverse Stock Split, and Mullen’s ability to regain compliance with Nasdaq Listing standards. 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 is the reverse stock split ratio for Mullen Automotive (MULN) and when is it effective?
Why is MULN doing a reverse stock split?
How many shares of MULN will be outstanding after the reverse split?
Do MULN shareholders need to take any action for the reverse stock split?
What happens to fractional shares in the MULN reverse stock split?
