Mullen Automotive Inc. (NASDAQ: MULN) will proceed with a 1-for-100 reverse stock split on June 2, 2025, in a strategic move to maintain its Nasdaq listing and meet minimum stock price requirements. The company's shareholders approved the split on May 21, with the board finalizing the implementation details.
The reverse stock split will dramatically reduce Mullen's outstanding common shares from approximately 80 million to about 800,000. Trading will continue under the same ticker symbol, with the stock price proportionally adjusted. No fractional shares will be issued, and most existing equity instruments will be proportionally modified.
This corporate action is critical for Mullen, as it aims to regain compliance with Nasdaq's $1.00 minimum bid price requirement. By consolidating shares, the company hopes to improve its stock valuation and maintain its position on the Nasdaq exchange.
The split comes at a pivotal time for Mullen, which has been expanding its electric vehicle (EV) commercial vehicle production. In August 2023, the company began commercial vehicle production in Tunica, Mississippi, and has since received IRS approval for federal EV tax credits and California Air Resource Board certification for its Mullen ONE and Mullen THREE vehicle models.
Investors should note that while the reverse split does not directly change the company's overall market capitalization, it signals Mullen's commitment to meeting exchange listing requirements and maintaining investor confidence in its ongoing EV manufacturing efforts.
