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USA, 28 June 2023: Mullen Automotive Inc, an emerging electric vehicle (EV) manufacturer, has announced an investor financing moratorium for the remainder of 2023. The company assures that it has enough capital to sustain its operations for at least the next 12 months. The investor option is set to expire on 30 June 2023, and the company’s assets, except for an outstanding debt of USD 7.3m, are unencumbered.
Despite the company’s cash position of USD 135m or USD 0.38 per share as of 13 June 2023, the stock is trading at a significant discount. The stock price has declined over 95% from USD 3.25 per share on 31 March 2023, to USD 0.16 per share on June 20, 2023. Management believes that the previously announced objectives have already been achieved or are on track to be met.
As of 31 March 2023, Mullen reported USD 86.7m in cash available for operations, representing a cash value of USD 0.68 per share. The company’s book value per share was USD 2.08 on the same date. With the current capital on hand, Mullen is confident in its ability to sustain operations for the next 12 months.
Mullen would like to highlight two significant acquisitions that have strengthened its balance sheet. The company acquired majority ownership in Bollinger Motors and certain assets related to Electric Last Mile Solutions (ELMS), totaling USD 253m. These acquisitions have added valuable, unencumbered assets to the company’s balance sheet.
Mullen Series D investors
In a recent development, Mullen’s Series D investors exercised their final option of USD 100m before the 30 June 2023, expiration date. This exercise has provided additional funding to the company, resulting in a cash and cash equivalents balance of over USD 235m. After accounting for the acquisitions, the company’s assets, with the exception of the outstanding debt of USD 7.3m, are unencumbered.
“We are in the best financial position in our company’s history and remain fully committed and highly focused on producing, selling, and delivering our vehicles to our customers prior to the end of 2023,” stated David Michery, CEO and chairman of Mullen Automotive.
Summary
Mullen Automotive has implemented an investor financing moratorium for the rest of 2023 and assures stakeholders that it has sufficient capital to support its operations for the next 12 months. The company’s recent acquisitions have bolstered its balance sheet, contributing to its strong financial position. With a significant cash reserve, Mullen is dedicated to achieving its production and delivery goals by the end of 2023.
