Mullen gets extension for Nasdaq compliance
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California-based Mullen Automotive Inc. (Nasdaq: MULN) has received approval from the Nasdaq for a 180-day extension to meet the stock market’s $1 minimum bid price requirement. The electric vehicle manufacturer, which has established a presence in northern Indiana, is facing delisting after its stock fell below $1 last July.
Mullen received a notice from the Nasdaq in September noting the company’s stock had been below $1 for 30 consecutive days. The company was given 180 days to regain compliance; that deadline ended on Monday.
The 180-day extension will allow Mullen to continue its efforts through Sept. 5.
The company said in January if it could not get its stock price above the $1 threshold by the end of the extension period, it would implement a reverse stock split.
A reverse stock split is when a company converts each outstanding share into a fraction of a share in an effort to increase the trading price of its shares, according to the U.S. Securities and Exchange Commission.
“Consistent with my message to our shareholders, we will use our best efforts to regain compliance to meet Nasdaq’s requirement for a $1 minimum bid price,” Chairman and CEO David Michery said in a written statement Wednesday.
Mullen entered the Indiana market by acquiring the assets of Michigan-based Electric Last Mile Solutions Inc. out of bankruptcy last year.
Among the assets is a 650,000-square-foot manufacturing plant in Mishawaka, which the company plans to use to produce its Mullen FIVE electric crossover vehicle, as well as an electric SUV and pickup truck. Mullen plans to begin production in 2024.