Emerging electric vehicle maker, Mullen Automotive Inc (NASDAQ:MULN) announced Thursday the launch of the Company’s $25 million stock buyback program. The automaker plans to purchase 3.7M shares of common stock through the end of the year, for an aggregate of $3,626,000.
Mullen CEO and chairman, David Michery also purchased 102,040 shares in the open market on Aug. 16, 2023, at a price of $0.9842 per share.
These purchases signal the company’s commitment towards regaining a minimum $1.00 bid price to remain compliant with the NASDAQ requirement.
The company was noticed by Nasdaq on March 7, 2023, which stated in part that “If compliance cannot be demonstrated by September 5, 2023, Staff will provide written notification that the company’s securities will be delisted. At that time, the company may appeal Staff’s determination to a Hearings Panel.”
The automaker was able to enact a 9:1 reverse stock split last week, bringing their per-share price above the $1.00 mark for a short time. However, shares quickly traded down below the minimum soon after.
“We believe that our stock is undervalued. The company has begun production of our Class 3 EV with deliveries pending to customers and a strong balance sheet allowing us to execute on our business plan,” said Michery.
Shares of MULN are down 8.5% in mid-day trading Thursday.