MULN - Mullen CEO Addresses Letter to Shareholders | Benzinga
BREA, Calif., Dec. 19, 2023 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ:MULN) ("Mullen" or the "Company"), an emerging electric vehicle ("EV") manufacturer, today shares an open letter to Mullen shareholders addressing its recent reverse stock split.
Dear Mullen Shareholders:
As most of you are aware by now, at the recently reconvened shareholders meeting held on Dec. 18, 2023, Mullen shareholders approved the Company effecting a reverse stock split.
Presenting this reverse split proposal to the Company's Board of Directors for consideration and thereafter to our shareholders was one of the most difficult decisions I have made as CEO, especially in light of the prior reverse stock splits implemented by the Company and the dilutive impact those have had on shareholders.
I have stated on multiple occasions that the price of our stock does not reflect the value of the Company. Mullen has achieved many important milestones, including the sales and delivery of vehicles assembled at its impressive facilities - but regardless of these achievements, our stock continued to decline. We also announced that we engaged law firms to investigate and file lawsuits based on manipulative trading activities that we believe have occurred with our stock. However, despite all of these actions, the Company stock continued to trade below Nasdaq's minimum one dollar bid price beyond allowed timelines resulting in the Company receiving a delisting notice. On appeal, the Company was granted until Jan. 22, 2024, to demonstrate that the stock had traded above one dollar for at least 20 consecutive trading days, failing which the Company would be permanently delisted from the Nasdaq capital markets.
There was only one way to give the Company the best possible chance of regaining minimum bid compliance for the mandated 20 trading days and that was by doing a significantly large reverse stock split.
As mentioned, I did not come to this decision lightly and certainly took no pleasure in taking these initiatives, but in order ...