Back in April, Mullen Automotive (NASDAQ:MULN) announced that it had formed Mullen Advanced Energy Operations (MAEO) in collaboration with Global EV Technology and EV Technology (collectively EVT) as well as Lawrence Hardge. The crux of the agreement was centered on Hardge’s energy management module (EMM), which claimed to increase the range of electric vehicles (EVs).
Global EV’s website states:
“Under the right conditions, the ranges of top EVs may increase by close to 500 to 700 miles […] It allows EVs to charge fully at lightning speeds at public charging stations in 15-20 minutes or within 1 hour at home, saving time and energy resources.”
In May, MAEO appointed Hardge as its Senior Vice President of Technology. However, it appears that Mullen will no longer engage with Hardge or his EMM. The company just announced that it has terminated its agreement with EVT and Hardge.
MULN Stock: Mullen Cuts Ties With Lawrence Hardge
Mullen cited four reasons for its termination of the agreement. The first is that EVT failed to execute documents demonstrating an “irrevocable, royalty free, worldwide exclusive license” to its intellectual property and EMM tech in perpetuity to MAEO. Next, Mullen points out that EVT refused to conduct tests of its EMM technology at an approved facility.
The third reason is that EVT refused to honor the terms of the Mutual Non-Disclosure Agreement multiple times. Finally, EVT also failed to disclose any third-party threatened legal action in relation to the EMM technology.
With the termination of the agreement, it appears that Mullen will now lose access to the EMM technology. The company had previously reported that internal tests of the EMM on its Class 1 EV Cargo Van had showed a range increase of 75%. A test of the technology conducted by Element Materials Technology showed that the range of a “high-volume OEM electric vehicle” had improved from 269 miles to 431 miles, marking a 60% increase.
Still, the warning signs were apparent. Hardge had previously stated that communications between him and CEO David Michery had deteriorated:
“But I can’t speak on David, we don’t talk. But I can tell you this here: I didn’t sign up for this.”
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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.
