Mullen Automotive (NASDAQ:MULN) stock is on the move Tuesday morning as investors react to news of it extending the maturity on one of its notes.
According to Mullen Automotive, it has entered into an agreement that has a senior secured convertible note of $28 million now being due in July 2024. That’s a two-year extension of the previous due date, which was July 28, 2022.
The note was originally issued to DBI Lease Buyback Servicing, an affiliate of Drawbridge Investments, back in 2020. It was sold to Esousa Holdings, an existing holder of MULN stock. Esousa Holdings agreed to the extension of the note’s due date.
David Michery, chairman and CEO of Mullen Automotive, said the following about the note extension news today.
“This note extension with Esousa is important for us, as it preserves our cash flow at a time when the economy appears to be hitting some headwinds, and it provides the Company with a strengthened cash position, allowing us to execute on our EV plans.”
MULN Stock Benefits From Russell 2000, 3000 News
There’s also other recent news that could push MULN stock higher in the coming days. The company is set to join the Russell 2000 and Russell 3000 indices starting next Monday. This has investors hoping for heavy trading that will push the price of the electric vehicle (EV) company’s shares higher.
MULN stock is up 3.8% in Tuesday’s pre-market trading. However, the shares are down 77.3% since the start of the year.
Investors seeking out more recent stock market news will want to keep reading!
InvestorPlace has all the latest coverage that traders need to get through Tuesday! That includes this morning’s biggest pre-market stock movers, the most recent EV charging news and more. You can catch up on all of that at the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.