Mullen Automotive Inc. (NASDAQ:), a leader in the electric vehicle market, has secured additional financing through the issuance of convertible notes and warrants, as detailed in a recent 8-K filing with the Securities and Exchange Commission (SEC).
On Monday, July 9, 2024, the Company entered into agreements with certain investors to purchase senior secured convertible notes in an aggregate initial principal amount of $10.5 million, including a 5% discount to the original issue. The Company also issued five-year notes exercisable in an aggregate amount of 3,834,726 shares of common stock.
In a separate transaction on the same day, Mullen Automotive reached a settlement with Ault Lending, LLC, issuing to it senior secured convertible notes in an initial aggregate amount of $3,157,894.74, including original issue discount, and exercisable warrants for 1,150,416 shares of common stock. This issuance was in exchange for 76,923 shares of the Company’s Class E Preferred Stock held by Ault Lending.
The Company also announced the issuance of an additional 837,600 shares of common stock between June 10 and July 8, 2024, as part of the settlement agreement with Silverback Capital Corporation.
Additionally, at a special meeting of shareholders held on Monday, July 9, 2024, the Company obtained approval for the above-mentioned securities issuances, which are intended to comply with Nasdaq Listing Rule 5635(d). Shareholders also approved the potential issuance and sale of common stock pursuant to a common stock purchase agreement dated May 21, 2024, with an investor in the stock line.
These financial moves are part of Mullen Automotive’s strategy to secure the capital needed for its operations and growth in the competitive electric vehicle industry. The issuance of the notes and warrants is exempt from registration under the Securities Act of 1933, as amended, pursuant to Section 4(a)(2) for transactions by an issuer that do not involve a public offering, and pursuant to Section 3(a)(9) for transactions involving exchanges with existing holders of securities.
The information in this article is based on the company’s most recent filing with the U.S. Securities and Exchange Commission, and is intended to provide investors with the latest developments regarding Mullen Automotive’s financial strategies.
In other recent news, Mullen Automotive has made significant progress in the electric vehicle space. The company announced the launch of POWER BOOST, a battery trade-in program that allows customers of Class 1 electric cargo vans to upgrade their lithium-ion battery packs to solid polymer battery packs. This development is expected to increase the driving range of these vehicles to more than 200 miles. The Mullen ONE equipped with the solid polymer battery pack is scheduled to begin production in the second half of 2025.
Mullen Automotive has also expanded its dealer network, boosting sales and service coverage across U.S. markets. The company’s Mullen THREE EV pickup truck is now eligible for a $15,000 government rebate in Massachusetts, lowering the price for buyers.
Additionally, Bollinger Motors, a subsidiary of Mullen Automotive, has received EPA certification for its B4 Chassis Cab, a Class 4 electric commercial truck, and has secured a deal to supply 80 of them to Momentum. The Bollinger B4 Chassis Cab is expected to launch in the second half of 2024.
These latest developments highlight Mullen’s commitment to innovation and its strategic approach to expanding its presence in the electric vehicle market.
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