Stock Market

Dear MULN Stock Fans, Mark Your Calendars for Jan. 22

Source: Ringo Chiu /

Time is ticking for shares of Mullen Automotive (NASDAQ:MULN) to close at or above $1. Yesterday, the electric vehicle (EV) company announced that it now has until Jan. 22 for its shares to close at or above $1 for 20 consecutive trading sessions. The Nasdaq Hearings Panel issued this deadline. A failure to accomplish this could result in MULN stock being delisted from the Nasdaq.

The Nasdaq Hearings Panel also informed Mullen that it has until March 8 to hold an annual shareholder meeting. Mullen last held its annual shareholder meeting on Aug. 3, although the meeting was deemed ineligible based on Nasdaq’s standards because the company did not allow shareholders to ask Mullen’s management questions about the business. This compliance issue is not material for the company, as it can be easily alleviated. The $1 minimum bid requirement is another story.

Can MULN Stock Reach $1?

It seems that Mullen already has a plan to reach $1, as the company recently proposed a reverse stock split in a range between 1-for-2 and 1-for-100 at its upcoming special meeting of stockholders on Dec. 15. The company made it clear that it only plans on enacting a reverse split if its shares can not reach $1 organically.

In 2023, Mullen has already reverse split its shares in a cumulative ratio of 1-for-225 following a 1-for-25 and 1-for-9 reverse split. An additional 1-for-2 reverse split would take that ratio to 1-for-450.

Based on Nasdaq policies, companies that have reverse split their shares in a cumulative ratio of 1-for-250 or more during the past two years are ineligible to receive a compliance period “and the Listing Qualifications Department shall issue a Staff Delisting Determination under Rule 5810 with respect to that security.”

Mullen also provided a bleak warning in its press release documenting the new deadlines:

“Examples of such risks and uncertainties include but are not limited whether the Nasdaq Listing and Hearing Review Council will review and if so, uphold the decision made by the Panel and whether the Company will be successful in regaining and maintaining Nasdaq listing compliance.”

On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that’s writers disclose this fact and warn readers of the risks. 

Read More: Penny Stocks — How to Profit Without Getting Scammed 

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.

Source link

Share with your friends!

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest stocks updates
straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.