MULN stock was trading at $0.3710 as of 01:59 PM EDT.
The assets of electric vehicle manufacturer ELMS (Electric Last Mile Solutions) were purchased by Mullen Automotive Inc. (NASDAQ:MULN) in an all-cash transaction, the firm announced. Mullen will buy the production facility, all of the stock, and the intellectual property of ELMS. ELMS declared bankruptcy in June.
The facility in Mishawaka, Indiana, will also be included in the agreement, giving Mullen the ability to produce up to 50,000 cars annually. The agreement enables a 12+ month acceleration of the path to production and market for Mullen FIVE and Bollinger B1, B2 retail cars.
The advantages include the Commercial Product Platforms that will be constructed at Mullen’s Tunica site and the introduction of Mullen Class 1 and Class 3 Commercial Delivery vehicles to the market in 2023. Total production volumes are anticipated to exceed Mullen’s prior business plan predictions thanks to the added manufacturing capacity. With the inclusion of ELMS assets, the commercial portfolio is anticipated to grow by over 50%.
Developments likely impacting MULN stock
The company has access to up to $275 million in cash thanks to Mullen’s cash on hand and funding promise of up to $240 million, which it can use to complete acquisitions and finance vehicle launches. As of June 30, 2022, it has $60.9 million in cash and cash equivalents.
The acquisition of Bollinger Motors by the firm for a majority stake was finalized in August 2022.
One of the more intriguing EV investments that may go boom in the future years is Mullen Automotive (NASDAQ:MULN). Along with creating its own line of electric vehicles, the company is also creating solid-state batteries to go with them. It claimed positive battery test results earlier this year that were higher than the amperage and voltage figures it had previously stated. The Mullen Five EV Crossover, the company’s flagship model, will eventually have larger batteries that will allow it to go more than 600 miles on a single charge.
In the most recent quarter, Mullen increased its R&D spending and signed a contract with DelPack Logistics, LLC, to purchase 600 Mullen Class 1 EVs and a few EV cargo vans over the course of the following 18 months.
It has a cash balance of $60.9 million, which should be enough to keep it afloat and allow it to keep making investments in its company. Mullen’s innovative idea is likely to yield several dividends as time goes on, and its current stock price makes it one of the most alluring moon-shot EV options available.
The CEO Of Mullen Automotive, Inc. (Muln) Has Sold 750,000 Shares Of Muln Stock
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Author Jowi Kwasu