Mullen Automotive Inc. will execute a 1-for-100 reverse stock split on June 2, 2025, strategically aimed at meeting Nasdaq's minimum bid price requirement. The company's shareholders approved the split on May 21, with the board finalizing the implementation plan.
Under the reverse split, Mullen's outstanding common shares will dramatically decrease from approximately 80 million to about 800,000. Shareholders will continue trading under the same ticker symbol, with no fractional shares to be issued. Existing equity instruments and convertible securities will be proportionally adjusted, with the exception of the 2022 Equity Incentive Plan.
This financial maneuver is critical for Mullen, as it seeks to regain compliance with Nasdaq's listing standards, which require a minimum share price of $1.00. The reverse split represents a typical corporate strategy to increase share price and maintain stock exchange listing eligibility, potentially signaling the company's commitment to meeting regulatory requirements and investor expectations.
Mullen, a Southern California-based electric vehicle manufacturer, has been expanding its commercial EV production. The company currently produces the Mullen ONE cargo van and Mullen THREE truck, both certified by California Air Resources Board and EPA, and has secured federal EV tax credits and state-level voucher programs for its vehicles.
