Net Element (NASDAQ:NETE) is seeing shares of NETE stock soar higher on Wednesday following some positive news from Mullen Technologies.
Mullen Technologies announced today that it has received a letter of intent to purchase up to 10,000 of its MX-05 electric vehicles (EVs). That includes an initial order of 1,500 of the EVs and up to 8,500 more by 2025.
So what exactly does the deal for Mullen Technologies have to do with the rise in NETE stock today? The two companies are preparing for a stock-for-stock reverse merger that will take Mullen Technologies public.
The merger deal between Net Element and Mullen Technologies was previously set to close in the third quarter of 2020. However, the companies have missed that mark but still appear to be moving forward with the merger plans.
When the Net Element and Mullen Technologies merger deal does come to a close, investors in the latter will own 85% of the new company. This will leave current NETE shareholders with a 15% stake in the merged entity.
The merger is also set to make major management changes at Net Element. That includes all members of its leadership team retiring, with the exception of chairman and CEO Oleg Firer, who will join the new Board of Directors. This will have Mullen Technologies executives taking over the leadership of the new company.
NETE stock was up 30.6% as of Wednesday morning and is up 350.2% since the start of the year.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.