Shares of Mullen Automotive (NASDAQ:MULN) stock are in the spotlight after the electric vehicle company filed a prospectus supplement to disclose the resale of up to 103 million shares upon the exercise of warrants as part of a prior securities purchase agreement.
These warrants carry an exercise price of either $1.4409, $3.888 or $4.68 and are exercisable upon issuance with a term of five years following issuance.
Mullen also posted a letter from the law firm McDermott Will & Emery, which stated:
“We have assumed that the number of shares of Common Stock, when combined with the number of authorized shares of Common Stock outstanding or otherwise reserved for issuance, be less than the number of shares of Common Stock authorized pursuant to the Amended and Restated Certificate of Incorporation.”
MULN Stock: Mullen Files to Resell Up to 103 Million Shares
Mullen stated that it may receive proceeds from the exercise of warrants and issuance of shares that are issuable upon the exercise of warrants. The proceeds would total $61 million upon the cash exercise of all of the warrants mentioned in the filing. However, Mullen will not receive any proceeds upon the sale of common stock from the selling stockholders.
The four selling stockholders are listed as Esousa Holdings, Michael Wachs 2022 Dynasty Trust, Acuitas Capital and TD Capital No 1 Pty Limited, which was formerly Davis-Rice Pty Limited. Acuitas is eligible to resell up to 45.09 million shares, followed by Esousa at up to 29.25 million shares. Michael Wachs’ trust trails behind with eligibility to resell up to 23.60 million shares, while TD Capital can resell up to 5.05 million shares. The shares being offered by selling stockholders are all issued and issuable upon the exercise of warrants.
“Our registration of the shares of Common Stock covered by this prospectus does not mean that the Selling Stockholders will offer or sell any of such shares of Common Stock,” said Mullen. “The Selling Stockholders may sell the shares of Common Stock covered by this prospectus in a number of different ways and at varying prices.”
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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.
