Shares of Mullen Automotive (NASDAQ:MULN) opened higher by over 25% following the submission of a Form 8-K that details the Mullen Advanced Energy Operations (MAEO) joint venture (JV) with Global EV Technology and EV Technology (collectively known as EVT). Lawrence Hardge, the founder and chief scientific officer of Global EV, also made a major announcement via live stream through Meta Platform’s (NASDAQ:META) Facebook.
The purpose of the JV will be to advance a device “previously known as a Battery Life Enhancing Technology along with Ever-Charge Technology and/or Energy Management Module.” The technology will focus on improving battery life for a variety of applications, such as extending the range of an EV. Mullen will own a 51% equity interest in MAEO, while the two other companies will own the remaining 49%.
As part of a letter of agreement (LOA) signed between the parties, EVT will license MAEO its battery improving technology and any related intellectual property () rights. EVT will also assign MAEO the rights to all contracts, government contracts and purchase orders relating to the technology. Mullen added that “EVT may grant a limited exclusive license to the Technology to a third party specifically for the United Arab Emirates.”
MULN Stock: Mullen Surges on Deal With Lawrence Hardge
In exchange, Mullen will pay Hardge $50,000 and an additional $5 million once the “definitive agreements” are completed and the associated IP rights are assigned to MAEO. Mullen has not yet specified the definitive agreements and will do it at the “earliest date practicable.” Furthermore, Mullen has agreed to fund MAEO with $5 million in capital that will be used towards business operations.
If that wasn’t enough news for MULN stock holders, Hardge also went on Facebook live yesterday to discuss the new JV. Notably, he teased an “already agreed upon” $10 billion contract with Saudi Arabia, saying:
“This is not what somebody said or what you heard, this is reality. $10 billion contract with Saudi Arabia. And more to come … Mullen and Lawrence Hardge are here to assist them, they have countries like Yemen, Israel, all of them have joined in to take this technology, and they’re going to produce it in Saudi Arabia and they’re also paying for a manufacturing plant to come to Michigan. That’s in black and white. So, the SEC if you’re watching, that’s already agreed upon.”
Mullen has not yet confirmed Hardge’s statement, although a $10 billion contract and the addition of a plant would undoubtedly be beneficial for MULN stock.
On the date of publication, Eddie Pan held a LONG position in META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.