On January 31, 2025, Mullen Automotive Inc. (NASDAQ:MULN), a player in the motor vehicles and passenger car bodies industry, conducted a Special Meeting of Stockholders where key decisions were made regarding the company’s stock structure. With the stock trading near its 52-week low of $0.24 and having declined nearly 100% over the past six months, the meeting addressed crucial structural changes. The meeting was held to vote on two proposals, with the presence of a quorum as required by the company’s bylaws.
The first proposal on the agenda was the approval to amend Mullen Automotive’s Second Amended and Restated Certificate of Incorporation to effectuate a reverse stock split of the company’s outstanding Common Stock. The proposed exchange ratio ranged from 1-for-2 to 1-for-100, subject to the discretion of the Board. This proposal was passed with 20,069,376 votes in favor, 4,552,509 against, and 141,546 abstentions. According to InvestingPro data, the company’s market capitalization stands at just $15.77 million, reflecting significant challenges in its valuation.
The second proposal, which was to approve the adjournment of the Special Meeting to a later date if necessary, was not presented as the first proposal passed and a quorum was established. However, the vote tally for this proposal stood at 20,308,016 for, 4,240,674 against, and 214,741 abstentions.
As a result of the meeting, Mullen Automotive is set to implement a reverse stock split, which could potentially impact the stock’s market price and liquidity. This strategic move is often used by companies to boost the perceived value of their stock and to remain compliant with exchange listing requirements.
As of January 31, 2025, Mullen Automotive reported that 61,777,360 shares of Common Stock were issued and outstanding. This press release statement serves as the basis for the reported changes to Mullen Automotive’s stock structure.
In other recent news, Mullen Automotive, an electric vehicle manufacturer, has been making notable strides in its operations. The company recently announced the expansion of its battery production capabilities at its Fullerton, California facility. This growth strategy aligns with Mullen’s efforts to meet the demand for domestically produced battery systems and reduce reliance on imports. The start of production at the Fullerton facility is planned for the second half of 2025.
Mullen Automotive also secured additional orders for its Mullen ONE, Class 1 EV cargo vans from two prominent California universities. This reflects the universities’ commitment to sustainability and carbon emissions reduction. Furthermore, the company sold its first Mullen ONE All-Electric Cargo Van to Mr. Appliance of Owings Mills, Maryland, marking its first venture into the home service sector.
In other developments, Mullen Automotive regained compliance with Nasdaq Listing Rule 5250(c)(1), ensuring its common stock will remain listed on The Nasdaq Capital Market. On the financial front, the company issued approximately $4.2 million in principal amount of 5% Original Issue Discount Senior Secured Notes and five-year warrants, part of its capital-raising efforts to support its operations and growth strategies.
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