Mullen Automotive Increases Authorized Common Stock From 1.75 Billion Shares to 5 Billion

David Shultz

David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.

Mullen Automotive Increases Authorized Common Stock From 1.75 Billion Shares to 5 Billion
Photo by Ringo Chiu/ Shutterstock

In a virtual stockholder meeting today, EV hopeful Mullen Automotive announced that shareholders had approved a proposal to increase authorized common stock from 1.75 billion total shares up to 5 billion total shares.


Mullen had been expected to vote on the proposal a week ago, but cited two ongoing legal cases regarding the manner in which the company had issued stock during 2022 as reason for the delay. On Monday, the Court of Chancery Delaware ruled that Mullen’s decision to authorize more common stock on July 26th, 2022 was legitimate, effectively freeing the company to authorize more today.

At the very end of today’s virtual meeting, Mullen also indicated that even though the company had approved a reverse stock split last week, there were no immediate plans to execute it, suggesting that the dilution will come first. This order of operations would free up Mullen’s leadership to sell the new shares to generate cash in the short term while keeping the option to reverse split in their back pocket for use in the future.

Barring some unannounced change to the company’s fundamentals or business prospects, a reverse split will likely be the only way for Mullen to raise its share price north of $1, which is required to remain listed on the Nasdaq and the Russell 2000 Index.

There are two important dates to watch here. Mullen would be delisted from the Nasdaq on March 6, 2023 for failing to trade above $1, but the company can file for a 180 day extension at that time. Mullen faces delisting from the Russell 2000 on June 23rd, when all the Russell Indexes are reconstituted.

Whether Mullen can raise its share price organically in the meantime remains to be seen. The stock is down 90% in the last year, but had risen 16% (to $0.34/share) on the news of the increased volume of common stock.

Subscribe to our newsletter to catch every headline.

LA-Based Apex Is Tapping Into the Small Satellite Market by Making Buses for Spacecraft

Spencer Rascoff

Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.

​Ian Cinnamon
Ian Cinnamon

On this episode of Office Hours, Apex founder and CEO Ian Cinnamon discusses the importance of investing in space exploration and shares his thoughts on the evolving space ecosystem in Los Angeles.


Read moreShow less
https://twitter.com/spencerrascoff
https://www.linkedin.com/in/spencerrascoff/
admin@dot.la

This Week in ‘Raises’: Measurabl Snags $93M, Selva Ventures Grabs $34M

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

Raises
Image by Joshua Letona

A local data management platform company lands fresh funding to help commercial real estate owners reduce carbon footprint, while one Los Angeles-based venture firm closes its second fund to accelerate the growth of emerging companies across health, wellness, beauty and personal care.

***

Read moreShow less

McKinsey & Company Launches InLA Accelerator To Help Underrepresented Founders Tackle Startup Challenges

Decerry Donato

Decerry Donato is a reporter at dot.LA. Prior to that, she was an editorial fellow at the company. Decerry received her bachelor's degree in literary journalism from the University of California, Irvine. She continues to write stories to inform the community about issues or events that take place in the L.A. area. On the weekends, she can be found hiking in the Angeles National forest or sifting through racks at your local thrift store.

McKinsey & Company Launches InLA Accelerator To Help Underrepresented Founders Tackle Startup Challenges
InLA

In 2022, female founders saw a 28% decline in overall U.S. funding, while Black-led startups saw a 38% decline in total capital received. In an effort to increase funding for minority-led startups, global venture firm McKinsey & Company is launching InLA, an accelerator program for underrepresented founders.

“This effort is something that the firm has been really excited about for a long time,” Engagement Manager Elkhyn Rivas Rodriguez said. “There's obviously a meaningful and growing startup community out here and just from a diversity standpoint, LA is incredibly diverse and multi-ethnic and multicultural. So we think that there will be a really great pool of potential companies to partner with.”

Read moreShow less
RELATEDEDITOR'S PICKS
LA TECH JOBS
interchangeLA
Trending