Mullen Automotive CEO is Up to Something?

Mullen Automotive (NASDAQ:MULN) is introducing new dilution proposals for later this year in its latest Annual Shareholder Meeting.

MULN stock is down more than -15% on Wednesday and more than -96% this year-to-date.

Despite several positive developments from Mullen Automotive, the company's stock has struggled to find stability throughout the year. One of the main factors contributing to the declining share prices is the significant cash burn experienced by Mullen Automotive, as it has not yet become a profitable company. Investing in Mullen Automotive at present can be seen as a form of crowdsourcing, with individuals ambitiously and loyally supporting the company's growth in hopes of witnessing its success.

Mullen Automotive managed to avoid delisting in May through a 1-for-25 reverse stock split. However, the share prices have once again dropped below Nasdaq's minimum bid requirement of $1, putting the company's stock at risk. The stock price managed to stay above $1 for only ten consecutive days. In an effort to address the situation, Mullen Automotive has proposed various initiatives, including increasing the number of common stocks, implementing another reverse stock split, granting the CEO additional shares, gaining approval for executive compensation, and issuing exercisable warrants worth $30 million in common stock.

The annual meeting is to be held on Thursday, August 3rd, 2023.

Investors will be able to attend a virtual meeting at 9:30am PDT.

MULN Dilution Proposals

Market News Daily – Mullen Introduces New Dilution Proposals for Later This Year.

Below are just a few of the new proposals for this year’s annual meeting to be held on August:

• Proposal 2 — To approve amendments to Company’s 2022 Equity Incentive Stock Plan to increase the number of shares of Common Stock authorized for issuance under the 2022 Plan by 52,000,000 shares.

• Proposal 3 — To approve the amendment of the Company’s second Amended and Restated Certificate of Incorporation to effect a reverse stock split of the Company’s outstanding common stock at an exchange ratio between 1-for-2 to 1-for-10 as determined by the Company’s Board of Directors.

• Proposal 5 — To approve, a non-binding advisory basis, the compensation of our named executive officers.

• Proposal 7 — To approve, for purposes of complying with Nasdaq Lising Rule 5635(c), of the issuance of shares of Common Stock to our Chief Executive Officer pursuant to a Performance Stock Award Agreement.

• Proposal 8 — To approve, for purposes of complying with Nasdaq Listing Rule 5635(d), amendments to a securities purchase agreement to provide for the issuance of $30 million in additional shares of Common Stock and warrants exercisable into shares of Common Stock, and any future adjustments of the exercise price of the warrants.

Investors will have to make a tough decision to either cut their losses or continue to support the company, no matter the cost.

Statement from Mullen CEO on Falling Share Prices

Mullen CEO David Michery – Mullen Shareholder Meeting 2023 proposals.

“I’m going to let my actions speak louder than words, I’m done speaking, I’m gonna deliver.

And I’m going to let the stock go where the stock’s gonna go. It’s gonna be based on performance.

The annual meeting, scheduled for Thursday, August 3rd, 2023, will provide an opportunity for investors to participate in a virtual gathering at 9:30 am PDT. Market News Daily has reported on Mullen Automotive's new dilution proposals for the upcoming annual meeting. Some of the proposals include amending the company's 2022 Equity Incentive Stock Plan to authorize an additional 52,000,000 shares of Common Stock, modifying the Second Amended and Restated Certificate of Incorporation to implement a reverse stock split ranging from 1-for-2 to 1-for-10, seeking non-binding advisory approval for the compensation of named executive officers, complying with Nasdaq Listing Rule 5635(c) through the issuance of Common Stock to the Chief Executive Officer via a Performance Stock Award Agreement, and amending a securities purchase agreement to allow for the issuance of an additional $30 million in Common Stock and exercisable warrants tied to Common Stock.

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