Mullen Automotive details additional financial concerns
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California-based Mullen Automotive Inc., which acquired a 650,000-square-foot manufacturing plant in Mishawaka late last year, is reporting continued concerns over its financial situation.
In its quarterly earnings report issued Monday, the electric vehicle manufacturer said it will need to secure additional capital by June 2024 to sustain operations.
Mullen reported a fiscal third-quarter net loss of $309 million, compared to a loss of $7.1 million during the same period last year. The earnings report said management believes the company has enough capital to continue operating through next June.
“The Company may need to seek additional equity or debt financing,” Mullen said. “While the Company expects to obtain the additional capital and/or financing that may be required, there is no assurance that the Company will be successful in obtaining the necessary funds to bring its product and service offerings to market and support future operations.”
The company said if financing is not available or if the terms of the financing it is able to secure are “less than desirable,” then it may be forced to decrease its planned level of investment in product development or scale back its operations.
Mullen had previously faced being delisted from the Nasdaq Stock Market after its common stock fell below the $1 minimum bid price requirement. The company received an extension to regain compliance through Sept. 5.
In May, the company said its stock had traded above $1 for 10 consecutive business days, however the price fell to as low as $0.16 per share as of June 20.
Mullen has initiated several reverse stock splits to boost its stock price, the most recent of which was a 1-for-9 split beginning Aug. 11.
The company’s stock was $0.99 per share at midday trading on Wednesday.
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.
On Wednesday, Mullen announced the Mullen FIVE RS EV Crossover will debut on the upcoming “Strikingly Different” EV tour kicking off Sunday in Austin, Texas, but did not provide an update on the car’s production.
It was also unclear whether the company’s financial concerns would have a direct effect on its Mishawaka operations.