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Dear MULN Stock Fans, Get Ready for a Reverse Stock Split Vote on Dec. 15

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  • Mullen Automotive (MULN) will hold its special meeting of stockholders on Dec. 15.
  • Shareholders of record will be able to vote toward a reverse split proposal in a ratio between 1-for-2 and 1-for-100.
  • MULN stock is down by more than 99% this year.
MULN stock - Dear MULN Stock Fans, Get Ready for a Reverse Stock Split Vote on Dec. 15

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Shares of Mullen Automotive (NASDAQ:MULN) just hit a new 52-week low of 12.61 cents ahead of its special meeting of stockholders on Dec. 15. The meeting will carry just one material proposal: a reverse stock split in a ratio between 1-for-2 and 1-for-100. The other proposal is to adjourn the meeting if the reverse split proposal does not receive enough votes.

Furthermore, the record date of the close of business on Oct. 30 has already passed. Shareholders of that date will be able to cast votes toward the meeting.

MULN stock has struggled to reach the pivotal $1 price point, despite enacting cumulative reverse splits in a ratio of 1-for-225 this year. That includes a 1-for-25 and a 1-for-9 reverse split. This is a big problem, as Nasdaq requires companies that trade on its exchange to maintain a minimum bid price of $1. To regain compliance, MULN must trade at or above $1 for 20 consecutive trading days on or before Jan. 22, 2024, and hold an annual shareholder meeting by March 8, 2024. A failure to satisfy these actions will likely result in MULN being delisted and moving to the over-the-counter (OTC) market.

MULN Stock: Mullen to Hold Special Meeting on Dec. 15

Mullen has made it very clear that it will only enact a reverse split if its shares cannot reach $1 organically.

“The Company intends to continue to implement its business plan to regain and maintain compliance with Nasdaq’s $1 minimum bid price and will only effectuate a reverse stock split if required to remain listed on Nasdaq,” said Mullen. If approved and enacted, the final reverse split ratio will be decided by Mullen’s board of directors.

If MULN is unable to stay above $1 following another reverse split, its days on the Nasdaq will be numbered. According to Nasdaq:

If a Company’s security fails to meet the continued listing requirement for minimum bid price and the Company has effected one or more reverse stock splits over the prior two-year period with a cumulative ratio of 250 shares or more to one, then the Company shall not be eligible for any compliance period specified in this Rule 5810(c)(3)(A) and the Listing Qualifications Department shall issue a Staff Delisting Determination under Rule 5810 with respect to that security.”

Another reverse split, even in a ratio of 1-for-2, would bring Mullen’s cumulative reverse split ratio to 1-for-450. That would make MULN ineligible for a compliance period if its shares fall below $1 again for 30 consecutive trading days following the reverse split.

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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

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2023/12/dear-muln-stock-fans-get-ready-for-a-reverse-stock-split-vote-on-dec-15/.

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