Mullen (MULN) stock experienced an 8.6% drop at the opening of trading on Friday as it introduced its freshly adjusted share price following a reverse split. In order to maintain its listing on the NASDAQ exchange, MULN must sustain a trading price above $1 for ten consecutive sessions.
This marks Mullen's second reverse split of the year. In the early months of May, Mullen executed a 1-for-25 split, briefly boosting the share price to $1.60. However, during that period, CEO David Michery and the company initiated an extensive share sale strategy to generate funds for the emerging electric vehicle enterprise, resulting in a subsequent decline in the share price to around $0.10.
Looking at the positive, management has reaffirmed its previous statement regarding the intention to initiate share purchases of up to $25 million after the submission of its upcoming 10Q report. This strategy is expected to contribute to an elevation in the share price, promoting a more secure trading level.
Furthermore, certain current shareholders are poised to acquire supplementary ownership, as Mullen has opted not to issue fractional shares. Instead, the company will "round up" quantities of less than nine shares to the nearest whole share value.
Shares of MULN are down 3.65% near end of day trading on Friday. Bringing share prices to $0.979/sh.
By Michael Elkins | Michael.Elkins@streetinsider.com