Mullen Automotive Raises Stake In Bollinger Motors To 95%, Trading Activity Halts As Stock Undergoes Reverse Split

Shares of electric vehicle manufacturer Mullen Automotive Inc. (MULN) caught investors’ attention on Monday after the company announced it has raised its stake in Bollinger Motors, Inc., after resolving recent claims and debt that had led to a court-ordered receivership for the company.

Mullen Automotive acquired an additional 21% of Bollinger Motors, raising its total ownership to 95%.

“The court in that action has entered an order discharging and removing the receiver, as well as dismissing the case with prejudice, ensuring Bollinger's continued operations under Mullen's complete ownership and strategic direction,” Mullen stated.

Bollinger will continue to operate as an independent majority subsidiary and will maintain its brand identity and focus.

Mullen said the transaction increases shareholder equity by approximately $3.5 million and highlighted that it will continue to provide full financial backing on sales, service, and warranty of vehicles.

Mullen expects the integration of Bollinger's capabilities into its EV ecosystem to create significant synergies, driving innovation and market expansion.

Meanwhile, Bollinger will focus on boosting its sales immediately while consolidating and streamlining operations. The company will continue to focus on the development and production of its B4 platform, leveraging Mullen's resources and expertise to accelerate its progress.

The B4 Chassis Cab is an all-new, all-electric Class 4 commercial truck with a 185-mile range, 46-foot turning radius, and a payload of 7,325 pounds.

Meanwhile, Mullen stock experienced a halt in trading activity on Monday morning, which was later resumed. The stock underwent a 1-for-100 reverse stock split on Monday, intended to bring the company into compliance with the $1 minimum bid price requirement for maintaining its listing on the Nasdaq exchange.

MULN shares have lost most of their value since the beginning of the year.

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