Shareholders of Mullen Automotive (NASDAQ:MULN) should mark their calendars for March 6, as that is the deadline for MULN stock to reach a minimum bid price of $1 for at least 10 consecutive business days, as stipulated by Nasdaq policies. The electric vehicle (EV) company first received notification of this requirement on Sept. 7, 2022.
Nasdaq may provide Mullen with an 180 calendar day extension if it fails to meet the March 6 deadline. 180 days after March 6 falls on Sept. 6. However, Mullen must provide Nasdaq with a written notice detailing its plan to achieve the $1 price mark by enacting a reverse stock split (if necessary) and satisfy all initial and continued listing requirements. If Mullen does not receive the extension, it will receive a written notice that MULN stock will be subject to delisting.
In the event of no extension, Mullen could request a hearing with the Nasdaq Hearings Panel. If the request is made in a timely manner, any suspension or delisting of MULN would be put on hold until the conclusion of the hearing.
Dear MULN Stock Fans, Mark Your Calendars for March 6
It appears that Mullen will take the reverse stock split path to regain compliance, unless its shares organically reach $1 for 10 consecutive business days. On Jan. 25, the company announced that it had “no plans at the current time to effect a reverse split.” Mullen has also stated that it will enact a reverse split if MULN does not reach $1 by Sept. 6.
There’s also another minimum bid price requirement in store here. Members of the Russell 2000 index must have a minimum bid price of $1 as well. MULN stock will remain a member of the index until June, at which time the index will rebalance. The company has stated that it will “evaluate if it is in the best interest of shareholders to initiate a reverse stock split for continued inclusion in the Russell 2000 index.”
The Russell 2000 also holds its rank day in May. On rank day, members must have a minimum bid price of $1 in order to be eligible for inclusion. As a result, Mullen could enact a reverse split in order to satisfy the rank day minimum bid price requirement.
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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.
