Michigan-based Mullen Automotive Inc (NASDAQ:MULN) announced Thursday that the electric vehicle company will affect a 1-for-9 reverse stock split of its common stock. The split will take effect August 11th at 12:01am EST.
During the company's annual meeting on August 3, its shareholders agreed to combine some of the company's common stocks in a reverse stock split. The company's board of directors decided on a 1-for-9 combination ratio. This change will be official on August 11, 2023, following the submission of a modified certificate to the incorporation records on August 7, 2023.
The reverse split is primarily intended to help the company meet Nasdaq's requirement of having a minimum bid price of $1.00 to stay listed. However, even with the split, there is no guarantee the company will meet the minimum bid price requirement.
No fractional shares will be issued in connection with the Reverse Stock Split. All fractional shares will be rounded up to the nearest whole share and will affect all stockholders uniformly without altering any stockholder’s percentage interest (other than as a result of the rounding of shares to the nearest whole share).
Shares of MULN are down 1.63% in afternoon trading Thursday.