Emerging electric vehicle maker, Mullen Automotive (NASDAQ:MULN) announced Tuesday that the electric automaker will effect a 1-for-100 reverse split of the company’s common stock effective on December 21st at 12:01 a.m.
Shareholders approved the proposal at the company’s 2023 Special Meeting on December 18th.
The reverse split is primarily intended to align the Company with Nasdaq's minimum bid price requirement of $1.00 to sustain its listing. However, there is no guarantee the company will meet the minimum bid price requirement.
The 1-for-100 reverse stock split will merge and transform one hundred existing shares of the Company’s Common Stock into a single issued and outstanding share of Common Stock.
The Reverse Stock Split will not generate fractional shares. Any fractional shares resulting from the split will be rounded up to the nearest whole share.
Mullen CEO, David Michery shared an open letter to Mullen shareholders addressing the reverse split.
“There was only one way to give the Company the best possible chance of regaining minimum bid compliance for the mandated 20 trading days and that was by doing a significantly large reverse stock split.” Wrote CEO Michery.
Shares of MULN are down 10.07% in afternoon trading on Tuesday.