Mullen CEO Buys Shares as Company Works to Meet NASDAQ Compliance
David Michery, the CEO and chairman of Mullen, recently purchased 102,040 shares of the company’s stock in an effort to demonstrate confidence and support amid Mullen’s endeavor to regain compliance with the NASDAQ minimum bid price requirement. The shares were acquired on August 16, 2023, at a price of $0.9842 per share.
In an announcement, Mullen stated its commitment to taking all necessary measures to meet the NASDAQ’s minimum bid price requirement and regain compliance. Under NASDAQ Listing Rule 5810(3)(H), companies failing to meet this requirement can achieve compliance by maintaining the minimum bid price for at least ten consecutive business days. However, the NASDAQ staff has the discretion to require a longer period of compliance, up to 20 consecutive business days, to ensure long-term adherence. Various factors, such as the margin of compliance, trading volume, market makers’ involvement, and the trend of the stock price, are taken into account during staff evaluations.
Mullen revealed that it received a notice from NASDAQ at an undisclosed date, which indicated that if compliance cannot be demonstrated, the company’s securities might face delisting. Nevertheless, Mullen has the opportunity to appeal NASDAQ staff’s determination to a higher authority.
CEO David Michery expressed his belief that Mullen’s stock is undervalued. He also highlighted the company’s progress in commencing production of its Class 3 electric vehicle, with pending deliveries to customers, and its strong financial position, which allows for the execution of their business plan.
Additionally, Mullen’s Board of Directors authorized a stock buyback program on an unspecified date. The program empowers the company to repurchase up to [the number of shares] of its outstanding common stock until [expiration date]. The shares may be repurchased in the open market or through privately negotiated transactions, depending on market conditions and other considerations. However, the authorization of this program does not impose an obligation on Mullen to make any purchases and remains subject to amendment or termination by the Board before the expiration date.
Mullen is an automotive company headquartered in [location], focusing on the development of the next generation of electric vehicles (EVs). Its assembly plants, located in [locations], will be responsible for manufacturing these EVs. Mullen’s portfolio includes the Mullen FIVE EV Crossover, Mullen-GO Commercial Urban Delivery EV, Mullen Commercial Class 1-3, and the B1 and B2 electric SUV trucks, along with Class 4-6 commercial offerings. In recent acquisitions, Mullen became a majority-owned EV truck company of [company name] and completed the purchase of [ELMS’] assets, including all intellectual property and a 650,000-square-foot plant in [location].
For further information, interested parties are encouraged to visit the investor relations section of Mullen’s website or SEC.gov to access public filings.
Mullen’s proactive steps, such as the CEO’s share purchase and the stock buyback program, reflect the company’s commitment to regaining NASDAQ compliance and bolstering investor confidence. As Mullen progresses with its production plans and focuses on the electric vehicle market, its efforts to meet regulatory requirements are poised to shape the future of the company.
