Mullen Automotive Inc (NASDAQ:MULN), an electric vehicle company, announced on Wednesday that Nasdaq has approved the Company’s request for a 180-day extension to meet the $1 minimum bid price requirement. This means that the company has until September 5, 2023, to meet the minimum bid price of $1 or risk a reverse stock split to cure the deficiency.
Mullen’s Plans to Regain Compliance
David Michery, CEO and chairman of Mullen Automotive, stated that the company will use its best efforts to regain compliance and meet Nasdaq’s requirement for a $1 minimum bid price. The company’s plans to achieve this goal are not yet known, but investors will be watching closely to see what steps the company takes.
Mullen’s Recent History
Mullen went public in November of 2021 after its reverse merger transaction with Net Element. The company’s 52-week high stock price is $4.18. However, the stock closed Tuesday near $0.20 per share. This decline in stock price has been a concern for investors, and the recent news of the minimum bid price requirement has only added to their worries.
Implications for Shareholders
The extension granted by Nasdaq is a positive development for Mullen and its shareholders, as it provides the company with more time to meet the minimum bid price requirement. However, if the company fails to trade above $1 for a minimum of 10 consecutive business days prior to September 5, 2023, a reverse stock split will be implemented. This means that shareholders will receive fewer shares in exchange for their existing shares, which could have a negative impact on their investments.
In conclusion, Mullen Automotive’s recent announcement of Nasdaq’s approval for a 180-day extension to meet the $1 minimum bid price requirement has given the company more time to regain compliance. However, the company still has a long way to go to meet this requirement, and shareholders will be closely monitoring Mullen’s progress over the coming months. With the electric vehicle industry rapidly expanding, Mullen has the potential to become a major player in the market, but its success will depend on its ability to meet Nasdaq’s requirements and gain the confidence of its investors.