Mullen Automotive (NASDAQ:MULN) stock is on the move Thursday following news of the electric vehicle (EV) company acquiring $150 million in funding for its purchase of Electric Last Mile Solutions’ (OTCMKTS:ELMSQ) assets.
ELMS holds several assets that Mullen plans to use for the production of its EVs. These include the company’s factory in Indiana, which is capable of churning out 50,000 vehicles per year.
In addition to that, Mullen is acquiring all intellectual property belonging to ELMS. With that comes data for the manufacturing of Class 1 van and Class 3 Cab Chassis. The company’s inventory, which is made up of finished and unfinished vehicles, is also part of the asset purchase.
Finally, the asset purchase also includes systems that support the manufacturing of vehicles. With that comes “equipment, machinery, supplies, computer hardware, software, communication equipment, data networks and all other data storage.”
More Details on the Funding
According to Mullen, it’s acquisition of ELMS assets will be complete in the near future. That will pave the way for the company to strengthen its standing in the EV market. Also, the funding it acquires will support the engineering, preparation and launch of the company’s vehicles.
With today’s news comes strong trading volume, with around 138 million shares changing hands as of this writing. That’s closing in on MULN stock’s daily average trading volume of about 147 million shares.
MULN stock is up 4.1% as of Thursday morning.
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On the date of publication, William White did not hold (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.