Shares of Mullen Automotive (NASDAQ:MULN) are barely in the green today, clawing back from an over 10% decline during the morning trading hours. However, time is ticking for MULN stock to close at or above $1 for at least 10 consecutive business days, but generally no more than 20 consecutive business days.
Nasdaq had previously provided Mullen with a deadline of Sept. 5. Including today, there are only six business days between now and Sept. 5, which does not include the Labor Day holiday on Sept. 4. As a result, it seems that Mullen will not be able to regain compliance on time and risks being delisted from the Nasdaq.
“If compliance cannot be demonstrated by September 5, 2023, Staff will provide written notification that the Company’s securities will be delisted. At that time, the Company may appeal Staff’s determination to a Hearings Panel,” said Nasdaq back in March.
In May, Mullen initiated a 1-for-25 reverse split. Just a few months later, the company then initiated a 1-for-9 reverse split, making for a cumulative reverse split ratio of 1-for-225. Meanwhile, MULN stock has plunged lower by 99% so far this year.
MULN Stock Is Running Out of Time to Regain Compliance
Earlier this month, Mullen launched its $25 million buyback program, repurchasing 3.7 million shares for $3.62 million on Aug. 17. The buyback carries an expiration date of Dec. 31, although the company has not disclosed if it has purchased additional shares since Aug. 17.
CEO David Michery has done his part to address the low stock price as well. On Aug. 23, Michery penned an open letter to shareholders reiterating his view that MULN stock does not trade at its actual value:
“As I have previously publicly stated, I do not believe the trading price of our stock even closely resembles the Company’s actual value. It is evident that, regardless of meeting significant corporate milestones (i.e., vehicle production completion within projected timelines), stock traders continue to place downward pressure on the stock, causing the price to fall.”
Nasdaq compliance aside, Mullen announce this morning that NRTC Automation Group had placed a purchase order for three Mullen THREE Class 3 vehicles. This is an interesting order, as NRTC had previously partnered with Mullen to assemble the THREE. In July, Michery guided for production of 930 Class 3 vehicles this year.
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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 InvestorPlace.com Publishing Guidelines.