Shares of Mullen Automotive (NASDAQ:MULN) stock are in full focus, as the record date for its upcoming annual meeting of stockholders will fall on June 22 at the close of business. This date is important because only shareholders as of then will be able to cast votes on the 11 proposals to be decided at the meeting. The meeting will be held on Aug. 3.
In addition, Mullen has not yet filed a DEF 14A filing to document the meeting, although it has filed PRE 14A and PRER14A filings. According to Investopedia, “Form PRE 14A is normally filed ten calendar days before a company files SEC Form DEF 14A, or a definitive proxy statement.” Mullen’s DEF 14A regarding its annual meeting last year contained information about its common stock outstanding. Therefore, shareholders are expecting to receive the same information this year as well.
Dear MULN Stock Fans, Mark Your Calendars for June 22
Mullen’s PRE 14A, filed on June 13, noted that there were 263.27 million shares of MULN stock outstanding as of the record date. Mullen disclosed a cash position of $135 million and a cash-per-share value of 38 cents as of June 15. Dividing 135 million by 0.38 gets us to an estimated 355.26 million shares outstanding.
Still, shareholders received welcome news this morning after Mullen disclosed that it has enough capital to sustain operations for at least the next 12 months. As a result, the electric vehicle (EV) company has placed a moratorium on new financing for the rest of the year. This is a huge plus for shareholders, as Mullen had previously engaged in dilutive debt that upped its share count.
At the same time, some of Mullen’s proposals for its annual meeting raise the potential for further dilution. Proposal two seeks to increase the number of shares authorized for issuance under the 2022 Equity Incentive Stock Plan by 52 million shares. Furthermore, proposal eight seeks approval for the issuance of $30 million in common stock and warrants exercisable into common stock in relation to a securities purchase agreement.
Other proposals involve a reverse stock split between 1-for-2 and 1-for-100 and a state of incorporation change to Maryland from Delaware, among others.
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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.
