Mullen Automotive (NASDAQ: MULN) is flailing in an attempt to bolster investor confidence, announcing this morning that it has placed a moratorium on conducting any financings for the remainder of 2023.
The company has indicated that it has sufficient capital on hand for “at least” the next 12 months, and that its assets are unencumbered aside from $7.3 million in outstanding debt. The company also reiterated its cash position, which sits at $135 million, or $0.38 per share, as of June 13, which is an increase from $86.7 million figure reported as of March 31.
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Remaining investor options are slated to expire on June 30, 2023, as per the company, suggesting that it may have received $45.0 million from certain investors related to a letter agreement dated June 12. That letter agreement indicates that in lieu of 104.2 million Series D preferred shares that were to be issued, investors would instead accept 54.7 million common shares and 49.5 million pre-funded warrants upon Mullen receiving a $45 million commitment.
Not even a week ago, the company issued a letter to shareholders in relation to a slew of emails it has received concerned about its declining share price following a reverse split conducted in May. At the time, Mullen highlighted recent transactions conducted to acquire Electric Last Mile Solutions and Bollinger Motors, as well as its assembly facility in Mississippi which is in the final stages of outfitting, as proof that the company has been progressing towards production by the end of the third quarter.
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Despite this, the firms equity, after trading at $3.25 on March 31, has declined to just $0.16 as of yesterdays close. Naturally, the company again failed to mention the shares outstanding in that time climbed from 126.3 million to 263.3 million.
Mullen Automotive last traded at $0.16 on the Nasdaq.
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.
