Shares of Mullen Automotive (NASDAQ:MULN) stock are accelerating higher by over 54% after the company unveiled new details concerning its all-cash acquisition of bankrupt Electric Last Mile Solutions (OTCMKTS:ELMSQ). The ELMS acquisition followed the closing of a majority ownership stake in Bollinger.
With the winning bid of $92 million, Mullen will receive several assets. Perhaps the main highlight is ELMS’ manufacturing facility in Mishawaka, Indiana. The facility has a production capacity of 50,000 vehicles per year and previously produced models of General Motors‘ (NYSE:GM) Hummer and contract-manufactured Mercedes Benz’s (OTCMKTS:MBGYY) R-class vehicle.
The electric vehicle (EV) company will also be able to integrate its existing FIVE and FIVE RS platforms with the facility, along with Bollinger’s platforms. Mullen’s proprietary vehicle, the FIVE, is expected to begin production during 2024, with deliveries starting during Q2 of 2024.
The company will receive assets such as finished and unfinished inventory and intellectual property. Adding on to the good news is a major positive catalyst that could happen next month.
MULN Stock Investors, Mark Your Calendars for Nov. 30
Back in July, Mullen announced that it had signed a binding agreement with DelPack Logistics (DPL), an Amazon (NASDAQ:AMZN) delivery service partner. The last-mile delivery company was founded in 2020 and serves areas in Indiana.
The agreement stated that DPL would purchase 600 Class 2 cargo vans over the next 18 months. The vehicles will be fully homologated for the U.S. The first 300 vans could be delivered as soon as Nov. 30, “at the request of DPL.” The Class 2 cargo van carries a range of at least 200 miles per charge and has a maximum payload of 3,296 lbs.
Furthermore, the vans will feature a “minimum of an 80 kilowatt per hour battery pack” and a cabin comfort package. Financial terms of the agreement, such as the sales price of each van, were not disclosed.
The vans were originally assembled at Mullen’s facility in Tunica, Mississippi, although it appears that production will now transition to the newly acquired ELMS facility.
Mullen has not yet stated whether DPL has requested the 300 vans by Nov. 30. However, with the deadline quickly approaching, investors should expect an official announcement within the next few weeks.
On the date of publication, Eddie Pan held a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
