Mullen Automotive Resolves Four-Year Legal Dispute with GEM Over Mishawaka Assets
TL;DR
Mullen Automotive settles legal dispute with GEM, allowing evaluation of asset transfer, focusing on expanding EV manufacturing operations.
GEM has 55-day due diligence period to evaluate Mullen's Mishawaka assets in settlement agreement, suspending collection activities.
Mullen Automotive's resolution with GEM fosters growth, meeting EV demand, enhancing commercial vehicle production, and expanding dealer network.
Mullen Automotive's settlement with GEM leads to increased EV production, potential asset transfer, and expanded dealer network, shaping future mobility.
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Mullen Automotive Inc. has successfully executed a settlement agreement with GEM Yield Bahamas Limited and GEM Global Yield LLC SCS, effectively resolving a long-standing four-year legal dispute. The agreement provides GEM with a 55-day due diligence period, subject to potential extension, to evaluate the transfer of Mullen's Mishawaka, Indiana assets in full satisfaction of the judgment.
During this period, all collection activities will be suspended, allowing both parties to conduct a comprehensive assessment of the asset transfer. The settlement represents a strategic move for Mullen, which remains committed to expanding its manufacturing operations in Tunica, Mississippi.
The company has been making significant strides in the electric vehicle market, with commercial vehicle production beginning in Tunica in August 2023. Mullen has already received IRS approval for federal EV tax credits and obtained California Air Resource Board certification for its Mullen ONE cargo van and Mullen THREE cab chassis truck.
The settlement provides Mullen with an opportunity to streamline its operational focus and continue developing its electric vehicle product lines. By resolving this legal dispute, the company can redirect its resources toward scaling production, expanding its dealer network, and meeting growing market demand for commercial electric vehicles.
With seven dealers now in its network and Foreign Trade Zone status approved for its Mississippi manufacturing center, Mullen is positioning itself to become a competitive player in the emerging electric vehicle commercial market.
Curated from InvestorBrandNetwork (IBN)
