Mullen Automotive could soon be delisted from Nasdaq
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
A West Coast electric vehicle manufacturer with a presence in northern Indiana is once again close to being delisted from The Nasdaq Stock Market.
Mullen Automotive Inc. said Thursday it received a letter from the Nasdaq indicating the company did not meet its Sept. 5 deadline to maintain a minimum bid price of $1.
The company, headquartered in Brea, California, received a notice in September 2022 that its stock had remained below $1 for 30 consecutive days and therefore was not in compliance with the stock market.
Mullen was given 180 days to regain compliance and received a 180-day extension in March, pushing the deadline to Sept. 5.
The company said in a news release that it has requested a hearing with the Nasdaq Listing Qualifications Panel to request another extension and present its plan to regain compliance. The hearing would typically stay any delisting or suspension pending a final decision by the panel, according to Mullen.
The panel could approve an additional 180-day extension and also apply more stringent criteria for the company to continue listing its common stock, Mullen said.
“Ultimately, there is no guarantee that the Panel will grant an extension of the compliance period,” the company said.
The company’s stock $0.44 per share at midday trading on Thursday.
The announcement is the latest in a string of financial troubles for Mullen. Last month, the company said in its quarterly earnings report that it will need to secure additional capital by June 2024 to sustain operations.
Mullen said it expects to obtain the financing it needs, but there was no assurance that it would be able to do so.
In December, Mullen completed its acquisition of Michigan-based Electric Last Mile Solutions, which included the former AM General plant in Mishawaka, for $105 million. The company plans to use the facility to manufacture its Mullen FIVE, an electric crossover vehicle, as well as an electric SUV and pickup truck in 2024.
Last month, Mullen announced the debut of Mullen FIVE RS EV Crossover, but did not provide an update on the car’s production.