Following Mullen Automotive’s (NASDAQ:MULN) special meeting of shareholders, the preliminary votes showed that shareholders voted in favor of a reverse stock split. Now, the final results are in, confirming the results of the preliminary vote.
The reverse split amendment, called Proposal No. 1, received 848.32 million votes for, 249.15 million votes against, and 15.20 million abstentions. These results did not include the votes from CEO David Michery’s Series AA preferred stock. Following the shareholder approval, the Series AA share was “automatically retired and restored to the status of an authorized but unissued share of preferred stock of the Company.”
Proposal No. 4 was also approved by shareholders. That proposal involves issuing $150 million in notes and up to $190 million in additional shares of Series D preferred stock. Proposal No. 4 received 476.73 million votes for, 144.56 million votes against, and 68.47 million abstentions.
MULN Stock: Shareholders Vote in Favor of Reverse Stock Split
While Proposals No. 1 and No. 4 were approved, the outcome of Proposal No. 2 still hangs in the balance. Proposal No. 2 seeks to increase the number of authorized common stock to five billion from 1.75 billion. Mullen noted that it would adjourn Proposal No. 2’s vote to Jan. 25 in order to provide shareholders with more time to contemplate their decision.
Furthermore, while Proposal No. 1 was approved, Mullen’s board cannot file to enact the proposal until it receives the green light from Delaware’s Court of Chancery. This is because two lawsuits allege that the proposal to increase authorized common stock at the company’s 2022 annual meeting on July 26 should have never been approved. To resolve this, Mullen scheduled a hearing with the Court of Chancery on Jan. 23 to ask the court to ratify its proposal to increase authorized shares. Mullen has not yet released the details on the outcome of the hearing.
Meanwhile, a petition calling attention to MULN has made the rounds. The petition requests Michery to join Genius Group (NYSEMKT:GNS) in investigating market manipulation and naked short selling. Genius recently announced plans to form an Illegal Trading Task Force to investigate trading irregularities in its stock. At the time of writing, the petition had over 10,000 signatures.
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.