Mullen Automotive (NASDAQ: MULN) yesterday announced that it has taken a majority interest in Bollinger Motors, an EV startup focused on heavy duty truck applications. Today, the EV-battery focused firm was already forced to address shareholder complaints on just how the acquisition is being paid for.
The acquisition saw Mullen take a 60% stake in Bollinger, whom focuses on medium duty trucks in classes three through six, while also having developed prototypes for two sport utility vehicles. Referred to as the B1 and B2 models, the firm in January had indicated it had received 30,000 pre-orders for the sport utility vehicles before it paused the development program to focus on commercial trucks. The company at time of announcement indicated it would stop development and cancel orders for those models.
Mullen, however, is now stating that the two models have “nearly 50,000 reservations” that were previously taken for the models. The firm also commented that development of the vehicles will begin again after production begins under the firms commercial vehicle program.
“Combining Bollinger’s vehicles with our existing class 1 and class 2 EV cargo van programs gives us the chance to dominate the entire class 1-6 commercial light and medium duty truck segments. In addition, Bollinger will be able to leverage Mullen’s solid-state battery technology, making their current vehicles even more competitive as our technology launches across the total portfolio of EVs from both Mullen and Bollinger,” commented Mullen CEO David Michery.
The purchase will see Mullen pay $148.2 million in cash and stock for a 60% interest in the firm. It’s presently unclear how the breakdown specifically shakes out. Investor concerns related to covering the cost of the purchase were apparent, with the company issuing a follow up statement this morning.
“All cash and stock required to close the Bollinger transaction on Sept. 7, 2022, has been funded or placed in escrow as required by the transaction documents. We are excited about the opportunities this acquisition brings and look forward to updating our shareholders with the positive outcomes resulting from this transaction,” said Michery.
No further details on the breakdown of payments were provided however, with this mornings announcement providing no additional details than yesterdays release. As of June 30, the company had cash of $60.9 million on the balance sheet, and total assets of $84.3 million. Current liabilities meanwhile amounted to $58.5 million, suggesting that the acquisition may put the firm in a precarious position.
Mullen Automotive last traded at $0.61 on the Nasdaq.
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