Mullen Automotive Blames Share Decline On “Unlawful Trading”
Mullen Automotive (NASDAQ: MULN) is again working to calm investor fears over its declining share price, issuing to shareholders another letter addressing the weakness in the markets.
“The Company has received numerous requests to respond to the ongoing decline of our stock. Many of these communications have been addressed to me personally with less than kind, and sometimes threatening statements,” commented CEO David Michery in the letter.
While stating that he takes shareholder concerns seriously, Michery failed to offer any real solutions to the problem, instead opting to push the narrative that there is “unlawful trading practices in [the] stock.” He then followed this up by stating that they would “use all measures” to eliminate such trading.
Despite the claims of the unlawful trading practices, Michery fails to mention one of the key problems faced by the equity: the blow-up of the firms share structure. The third quarter started with 14.0 million shares outstanding as of March 31. The company ended the quarter with 86.8 million shares outstanding – a 518% increase of outstanding shares in just a three month period.
At least a further 97.4 million shares were issued after the end of the quarter as per the firms Form 10-Q filing for the third quarter.
The massive expansion of shares lead the company to conduct the second reverse split this year in mid-August, when it implemented a 1 for 9 reverse split, which followed a 1 for 25 reverse split conducted in early May 2023. The share figures above are adjusted to reflect the splits, with the company as of August 14 reporting that 184.2 million common shares are outstanding.
Yet Michery has placed the blame on stock traders rather than himself, stating in the letter to shareholders that “stock traders continue to place downward pressure on the stock, causing the price to fall.”
READ: Mullen Automotive Enters Production With Class 3 EV Truck
The solution to the downward price pressure of the equity appears to be more related to the management side of the operation, rather than the investor side.
Mullen Automotive last traded at $0.65 per share, after having again fallen below minimum price requirements as per the Nasdaq exchange. The company has fallen over 19% following last night’s letter to shareholders. Year to date the equity is down over 99%.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
Lol and the comments are filtered. May the universe give you precisely what you deserve.
I smell motive from this writer. You don’t usually report on Mullen. Hmmmmmm…..
If you click on the tag at the top, you will see that we indeed comment on Mullen plenty.
Just because you don’t like the data, doesn’t mean it ain’t real.