Mullen Automotive (NASDAQ:MULN) stock was momentarily halted this morning after the company announced that it had received a $200 million purchase order from Randy Marion Isuzu (RMI), a division of Randy Marion Automotive Group (RMA). Shares were halted from 8:55 a.m. to 9:50 a.m. Eastern.
According to Nasdaq, the reason codes behind the halt were T1, T2 and T3. The first of these, T1, states that the halt was initiated because MULN stock was “pending the release of material news,” or RMI’s purchase order.
Next, T2 states that the “news has begun the dissemination process through a Regulation FD compliant method(s).” Regulation FD is a rule that prevents publicly traded companies from disclosing material, non-public information (MNPI) to people outside of the company unless it also shares the information with the general public.
Finally, T3 is the code that shows that the information has been disseminated through a Regulation FD compliant manner or that the “system misuse or malfunction” is deemed by Nasdaq to no longer have a material effect on the stock. In other words, T3 signals the end of the halt.
With all that in mind, let’s get into the details of the purchase order.
MULN Stock: Mullen Receives $200 Million Purchase Order From RMI
RMI has agreed to purchased 6,000 Class 1 electric vehicle (EV) vans from Mullen, with the first deliveries set to begin during the first quarter of 2023. The exact timetable of the entire purchase order was not immediately disclosed, however.
RMA CEO and founder Randy Marion added the following about the news:
“We see a tremendous opportunity with the Mullen commercial portfolio, and the launch of the commercial van could not come at a better time […] There’s significant pent-up customer demand for Mullen to fulfill. I have many customers looking at me to find product for their companies.”
Earlier this week, Mullen announced that it had entered into a commercial partner deal with RMA, its first U.S. dealer partner. As part of the agreement, RMA will service and sell Mullen’s portfolio of Class 1 through Class 6 EVs. Randy Marion Automotive operates 12 dealerships across North Carolina and South Carolina, making it one of the largest dealerships in the region.
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On the date of publication, Eddie Pan 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.
