U.S. Department Of Commerce Approves Mullen's Tunica, Miss., Facility As Foreign Trade Zone; Estimates That Resulting Deferred Working Capital On Domestic Sales Could Result In Deferred Outlays Of Up To $21M For FY24 And FY25
Portfolio Pulse from Benzinga Newsdesk
Mullen Automotive, Inc. (MULN) has been granted Foreign Trade Zone status by the U.S. Department of Commerce for its facility in Tunica, Mississippi. This approval allows Mullen to defer payments on import duties, potentially deferring up to $21 million in outlays for FY2024 and FY2025, improving cash flow.
May 09, 2024 | 1:36 pm
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Mullen Automotive's approval for Foreign Trade Zone status is expected to significantly improve cash flow by deferring up to $21M in import duties for FY2024 and FY2025.
The Foreign Trade Zone status approval for Mullen Automotive's facility directly impacts the company's financial health by improving cash flow through deferred import duty payments. This is a significant development for Mullen, as it reduces immediate financial pressure and could positively influence investor sentiment and the stock price in the short term.
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