Mullen Automotive (NASDAQ:MULN) stock has been taken for a spin this week in light of several significant announcements. First, the electric vehicle (EV) company issued a series of proposals to be voted on at its special meeting of stockholders on Dec. 23. These include a reverse stock split in the ratio between 1-for-2 and 1-for-25 and an increase in authorized shares from 1.75 billion to 5 billion, representing an increase of 185%. This share consolidation would help Mullen regain the minimum $1 bid price required to stay listed on the Nasdaq and be included in the Russell 2000 and Russell 3000 indices.
Mullen has until March 6 to regain compliancy with the Nasdaq, although it is eligible to file another 180-calendar-day extension on that day if MULN stock still trades under $1 per share. Furthermore, the company has until the “rank day” in May to regain compliancy with the Russell indices.
Meanwhile, another catalyst for MULN stock is just around the corner. Let’s get into the details.
Dear MULN Stock Fans, 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 partner that operates last-mile delivery services in Indiana. The agreement stated that DelPack would purchase up to 600 Mullen Class 2 EV cargo vans over the next 18 months. These vans will be fully approved in the U.S. with a range of at least 200 miles per charge and a maximum payload of 3,296 pounds.
Mullen could deliver the first 300 vans of the order as soon as Nov. 30 “at the request” of DPL. Mullen and DPL did not disclose the financial terms of the agreement.
This delivery would mark a significant milestone for Mullen, as it does not have any vehicles on the road yet. On top of that, DelPack’s status as an Amazon delivery partner would certainly give the EV startup a reputation boost.
Still, Mullen has not yet issued any information as to whether or not DPL has requested the 300 vans. It would certainly look bad for MULN stock if DelPack backs out of the van order. That could imply that DelPack was dissatisfied with the vehicles upon further inspection.
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