Mullen Automotive Inc. Implements 1-for-100 Reverse Stock Split

BREA, Calif., Dec. 19, 2023 — Mullen Automotive Inc. MULN, a budding electric vehicle (EV) manufacturer, has announced the implementation of a 1-for-100 reverse stock split of its common stock, scheduled to become effective on December 21, 2023. The reverse stock split is aimed at amplifying the per-share trading price of MULN's common stock, which may enhance the stock's appeal to investors and potentially meet the Nasdaq's continuous listing standards.

What is a Reverse Stock Split?

A reverse stock split involves the reduction of the total number of a company’s outstanding shares by a specific ratio, simultaneously increasing the share price by the same ratio. For example, in a 1-for-100 reverse stock split, an investor holding 100 shares of a stock valued at $1 per share prior to the split would end up with a single share valued at $100 post-split, assuming no market variations that might impact the actual price.

Reasons Behind MULN's Decision

The move by Mullen Automotive reflects a strategic decision to revitalize the market posture of its shares and to remain in compliance with Nasdaq's listing requirements. Reverse stock splits are often employed by companies to lift share prices, reduce the number of shareholders, and improve perceptions of the stock. It is crucial for investors to note that such corporate actions do not change the company’s market capitalization or the intrinsic value of the shareholders' investments.

Implications for Investors

Shareholders of MULN should be aware that the reverse stock split will consequently reduce the number of outstanding shares. This may affect liquidity but could also potentially reduce the volatility observed in lower-priced stocks. Investors considering holding or purchasing MULN shares should evaluate the potential impacts of the reverse stock split on their investment strategy.

Future Outlook for MULN

MULN continues to garner attention as an emerging player in the EV sector. The company’s adoption of the reverse stock split could be seen as a step towards achieving financial stability and attracting institutional investors. Whether this move will prove beneficial for MULN in the long-term remains to be seen, as the EV market is highly competitive and subject to rapid change.

Mullen, ReverseSplit, EV