Shares of Mullen Automotive Inc. (NASDAQ: NASDAQ:MULN) are 1.3% lower today, following the electric vehicle maker's receipt of a delisting determination from the Nasdaq. The company has been unable to maintain the minimum stock bid requirement of $1, leading to this development.
On Wednesday, Mullen Automotive requested a hearing before the Nasdaq Listing Qualifications Panel, seeking an extension and presenting a plan to regain compliance. If the company had not requested this hearing, its stock would have been delisted on September 15.
The company's shares have closed below $1 since August 16, with Wednesday's close of 45 cents marking a new record low. This is despite the company implementing a 1-for-25 reverse stock split in May and a 1-for-9 reverse split in August, which effectively multiplied the stock price by 225. Over the past three months through Wednesday, the stock has plummeted 90.3%.
Earlier this year in May, Mullen Automotive managed to close at or above $1 for ten consecutive business days following a 1-for-25 reverse split. However, Nasdaq required the company to close at or above $1 for more than ten consecutive business days, which it failed to achieve. Factors such as MULN's margin of compliance, price trend, trading volume, and the market maker montage influenced this decision.
Mullen's requested hearing will likely stay any delisting or suspension action pending the issuance of a final decision by the Panel. The panel has the discretion to grant another 180-calendar-day extension for Mullen to regain compliance. However, there is no guarantee that such an extension will be granted.
After initiating two reverse splits that resulted in a cumulative reverse split ratio of 1-for-225 and approving a $25 million buyback program, of which $5.61 million had been used as of August 29, Mullen's efforts to regain the $1 threshold could come to an end with this delisting determination. As MULN's stock has declined by 99% this year, investor sentiment remains extremely low.
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