The stock of EV startup Mullen Automotive hit an all-time low Wednesday evening following a delisting determination sent by the Nasdaq Stock Market for failure to maintain a minimum bid price of $1. This news comes as the latest blow to a company that has consistently sparring with financial firms and analysts lately and must now fight being delisted altogether.
Mullen Automotive ($MULN) is a Southern California-based EV startup approaching its 10-year anniversary while still working to bring its first passenger EV to market. The startup appeared closest to its goal following a 2020 merger in which it pivoted toward building its own bespoke EV model – the FIVE crossover SUV.
However, we started scratching our heads in the fall of 2022 when Mullen claimed a majority stake in Bollinger Motors’ commercial EV business, vowing to resurrect the latter’s ill-fated B1 and B2 electric trucks into production as well.
This was quickly followed by the acquisition of another commercial EV startup, Electric Last Mile Solutions (ELMs) and all its assets – including its Class 3 truck which recently went into production in Mississippi.
Then there’s last April’s partnership with EVT – a company led by convicted fraudster Lawrence Hardge – yet another interesting decision. Believe it or not, financial firms and stockholders follow these movements and invest their money as such. As a result, Mullen’s stock has had a tough go of it.
The startup implemented a 1-for-25 reverse stock split in May, followed by a 1-for-9 reverse split in August, but still fell below the $1 threshold where it has remained since August 16. Due to this non-compliance, the Nasdaq has determined Mullen’s stock must be delisted, but the company is of course, fighting back.
Mullen requests hearing to avoid stock delisting
In a press release sent out by Mullen Automotive today, the startup acknowledged it has received a letter of non-compliance from the Listing Qualifications Department of The Nasdaq Stock Market after missing its September 5, 2023 deadline to get its stock back above $1.
Mullen followed by stating it immediately filed a request for a hearing before the Nasdaq Listing Qualifications Panel on September 6, seeking an “extension of time and (to) present its plan to regain compliance.”
Due to the filed request, Mullen’s stock will stay listed for now and the Nasdaq Panel now has the power to decide if it will grant the startup an additional 180 days from the original September 5 deadline to regain compliance, but there is no guarantee.
Today’s news represent’s Mullen stock’s last deep inhale before potentially sinking for good. The last month alone has been a whirlwind ride of stock splits, buyback programs, and an open letter from CEO David Michery trying to calm down shareholders while a towering inferno of concern figuratively blazes behind him.
Most recently, Mullen has filed a lawsuit against some major players in stock trading, including TD Ameritrade and Charles Schwab, alleging a scheme in which these firms manipulated share prices unlawfully. Whether that’s true or not is not for us media to determine, but when you point the finger at someone, there’s situations when it’s important to remember that there are still three fingers pointing back to you.
As of market opening Thursday, Mullen’s stock sat at $0.40 per share, down another five cents since market close last night, which remains its lowest value to date.
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