Mullen Automotive (NASDAQ: MULN) is forging ahead with its plans to become the latest electric vehicle manufacturer, announcing this morning it has closed on the purchase of Electric Last Mile Solutions. The purchase is expected to enable the company to enter the commercial market earlier than planned.
The purchase of Electric Last Mile are said to include all intellectual property developed by the firm, along with any inventory and related assets. Also included is the firms factory in Mishawaka, Indiana, where General Motors previously had the Hummer H2 produced, and Mercedes-Benz manufactured its R-Class vehicle.
The acquisition is expected to enable Mullen to begin delivery of its Class 1 product in the first quarter of 2023, followed by the Class 3 vehicles in the second quarter, pending final certification. The facility is also expected to enable the production of the Mullen FIVE SUV, as well as the Bollinger B1 and B2 offerings. The facility is said to have a production capacity of 50,000 vehicles per annum.
The total purchase price amounted to $105 million, paid in cash. The assets were purchased via Chapter 7 bankruptcy proceedings, with the purchase by the courts being approved back in mid-October. Funding for the purchase came via a $150 million financing completed in November.
Mullen Automotive last traded at $0.19 on the Nasdaq.
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