Mullen Automotive Inc. Announces 1-For-100 Reverse Stock Split Effective December 21, 2023
Portfolio Pulse from Benzinga Newsdesk
Mullen Automotive Inc. (NASDAQ:MULN) announced a 1-for-100 reverse stock split effective December 21, 2023, to comply with Nasdaq's $1.00 minimum bid price requirement. The split will adjust outstanding equity awards, warrants, convertible notes, and preferred stock conversion prices. No fractional shares will be issued; they will be rounded up to the nearest whole share. The split aims to maintain Nasdaq listing but does not guarantee meeting the minimum bid price requirement.
December 19, 2023 | 4:49 pm
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NEUTRAL IMPACT
Mullen Automotive's reverse stock split is a strategic move to comply with Nasdaq's minimum bid price requirement. The split may affect the stock's liquidity and market perception, potentially leading to increased volatility.
Reverse stock splits are often used by companies to maintain compliance with exchange listing requirements, in this case, the $1.00 minimum bid price on Nasdaq. While it does not inherently change the company's value, it can lead to increased volatility due to changes in market perception and liquidity. The impact is neutral in the short term as the market adjusts to the new share structure.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100