Mullen Issues Letter to Shareholders

Company trades at a discount to its current cash position of $135M or $.038 per share. As of its most recently filed form 10-Q on March 31, 2023, the Company’s book value was $2.08 per share.

BREA, Calif., June 15, 2023 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer, today provides a business update letter to shareholders.

Dear Shareholder,

We want to respond to the many emails and calls regarding the decrease in our share price. Since March 31, 2023, our stock has declined 90% from $3.25 per share. On June 13, 2023, the Company’s common stock closed at $0.32 per share. The Company currently trades at a discount to its current cash position of $135 million or $.038 per share.

Despite the decline in stock price, management believes we are in position to meet the previously announced objectives for moving first into the production and then sale of our Class 3 commercial vehicles during the quarter ending Sept. 30, 2023.

As per the Company’s last reported financial position on March 31, 2023, we had $86.7 million of cash available to operations and $0.68 of cash value per share. Our book value per share was $2.08 on March 31, 2023. 

In addition to cash, the Company has completed two acquisitions that added valuable, unencumbered assets to the balance sheet:

• On Sept. 7, 2022, Bollinger Motors became a majority-owned EV truck company of Mullen Automotive, with a product portfolio that includes both the B1 and B2 electric SUV and pickup trucks and Class 4-6 commercial cab chassis trucks. Mullen’s 60% acquisition stake of Bollinger for $148 million included $77 million to fund all vehicle development, manufacturing and capital needs to launch the class 4 EV chassis cab truck (Bollinger B4). Bollinger plans are still on track to launch customer pilots in the quarter ending Dec. 31, 2023, and the start of sales in the quarter ending June 30, 2024.
• On Dec. 1, 2022, Mullen purchased certain assets of Electric Last Mile Solutions (“ELMS”) for $105 million, which included all of the IP and a 650,000-square-foot manufacturing plant in Mishawaka, Indiana. The acquisition also included work in progress on inventory of approximately 400 Class 1 electric van kits and batteries, which can be sold at an MSRP of $36,500 each. The ELMS assets purchased included all of the engineering development of commercial vehicle classes 1 and 3. The Company intends to manufacture the Mullen FIVE EV Crossover and Bollinger B1 and B2 SUVs and trucks at the Mishawaka Plant. 

In addition to acquisition assets listed above, Mullen’s Tunica, Mississippi, assembly facility has over 120,000 square feet of manufacturing space on 100 acres of land. The Tunica facility is in the final stages of equipment installation for the launch of Mullen’s commercial Class 3 production in the quarter ending Sept. 30, 2023.