Electric vehicle (EV) news for Monday includes a merger agreement between Mullen Technologies and Net Element (NASDAQ:NETE).
The merger agreement between the two companies will have a stock-for-stock reverse merger taking place. This will have Mullen Technologies shareholders owning 85% new company once the merger is complete. The remaining 15% will belong to NETE shareholders. It also allows the company to go public without an IPO.
The merger agreement will have Net Element divesting its payments processing business and portfolio. Electric car company Mullen Technologies has its own payment systems in place. That includes its Mullen Auto Sales retail business and AI-powered CarHub digital platform.
Another thing worth noting about the merger agreement is the management changes. Net Element will see its current management team resign and be replaced by a new management team led by David Michery, the founder, chairman, and CEO of Mullen Technologies.
The only exception to this is Net Element chairman and CEO Oleg Firer. He will continue to stay with the company post-merger as a member of the Board. Mullen Technologies will fill out the rest of the Board with members of its choosing.
Firer said this about the EV news.
“We feel, after considering an array of strategic alternatives, that the agreement with Mullen provides our shareholders with the most compelling opportunity. We conducted an extensive search of companies that have disruptive technologies, and believe that Mullen represents the best path forward.”
The merger deal is expected to close during the third quarter of the year.
NETE stock was up 52% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.