Mullen approaching Nasdaq delisting deadline
A California-based electric vehicle manufacturer with a presence in northern Indiana is facing potential delisting from the Nasdaq. Mullen Automotive Inc. (Nasdaq: MULN) said this week it is continuing efforts to bring its stock price above the minimum $1 bid requirement before a March 6 deadline.
Mullen’s stock fell below $1 per share in late July 2022 and has not crossed the minimum threshold since.
In September, Mullen received a letter from the Nasdaq indicating the company’s stock had remained below $1 for 30 consecutive days and was therefore not in compliance with the stock market.
Mullen was given 180 days to regain compliance with the minimum bid requirement. The company could be eligible for an additional 180-day compliance period.
During a special meeting of stockholders this week, Mullen said it did not have any immediate plans to initiative a reverse stock split to help bring its per share price back above $1.
“If the share price of the Company’s stock falls short of the said requirement, the Company intends to seek an extension from NASDAQ to meet the required threshold,” the company said in a news release. “If such extension is granted, compliance of the minimum $1.00 stock share threshold requirement may be extended for a further 180 days until approximately September 6, 2023. If the Company still falls short of the minimum bid requirement, it will effect a reverse stock split at that time to maintain its Nasdaq listing compliance.”
A reverse stock split is when a company converts each outstanding share into a fraction of a share in an effort to increase the trading price of its shares, according to the U.S. Securities and Exchange Commission.
Mullen is also a member of the Russell 2000 index, which also requires a minimum stock price of $1, through June 2023. The company said it its stock remains below $1 by that time, it will evaluate whether to initiate a reverse stock split.
Mullen entered the Indiana market by acquiring the assets of Michigan-based Electric Last Mile Solutions Inc. out of bankruptcy last year.
Among the assets is a 650,000-square-foot manufacturing plant in Mishawaka, which the company plans to use to produce its Mullen FIVE electric crossover vehicle, as well as an electric SUV and pickup truck. Mullen plans to begin production in 2024.