Shares of Mullen Automotive (NASDAQ:MULN) stock opened higher by over 10% today. The electric vehicle (EV) company announced that it has enough capital to sustain operations for at least the next 12 months. As a result, it will place a moratorium, or pause, on new financings for the rest of the year.
Mullen also announced that its remaining investor option will expire at the end of the month. Furthermore, its company assets are unencumbered, or free of debt, liens and claims, with the exception of $7.3 million in outstanding debt.
“The Company would like to highlight two completed acquisitions that added valuable, unencumbered assets to the balance sheet totaling $253 million for majority ownership in Bollinger Motors and certain assets related to Electric Last Mile Solutions (‘ELMS’),” said Mullen.
MULN Stock: Mullen Announces Moratorium on New Financing
This is undoubtedly a plus for the company and its shareholders, as Mullen had previously engaged in dilutive debt that added to its share count. Its lenders included Esousa Holdings and Acuitas Capital, among others.
Furthermore, the company reiterated that its stock trades at a discount when compared to its cash balance of $135 million as of June 13. That would equate to a cash value of 38 cents per share.
Meanwhile, production for its Class 3 vehicle, called the THREE, seems to be just on the horizon. Last month, the company announced that it had teamed up with NRTC Integration to begin Class 3 production in July at its manufacturing facility in Tunica, Mississippi. The facility has over 120,000 square feet of manufacturing space and sits on 100 acres of land.
Deliveries of the THREE are expected to commence in the quarter ending Sept. 30. To date, Mullen has received $279 million in purchase orders from Randy Marion Automotive Group for its Class 1 and 3 vehicles. CEO David Michery added:
“It’s gratifying to see our Class 3 vehicle production line coming together in Tunica and even more validating to know we will have vehicles coming off the line and delivered to customers later this summer.”
Production for Bollinger seems to be making progress as well. Its Class 4 EV chassis cab truck is expected to begin customer pilots in the quarter ending Dec. 31, while sales are forecasted to take place in the quarter ending June 30, 2024.
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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.
