Mullen Automotive Acquires Assets Of Bankrupt ELMS

Mullen Automotive Inc MULN said the U.S. Bankruptcy Court approved its acquisition of electric vehicle company ELMS' (Electric Last Mile Solutions) assets in an all-cash purchase.
Mullen will acquire ELMS' manufacturing plant, all inventory, and intellectual property. ELMS filed for bankruptcy in June.
The deal will also include the factory in Mishawaka, Indiana, providing Mullen with the capability to produce up to 50,000 vehicles per year.
The deal allows acceleration of the path to production and market for Mullen FIVE and Bollinger B1, B2 retail vehicles by 12 plus months.
The benefits include Commercial Product Platforms to be assembled at Mullen's Tunica facility, launch of Mullen Class 1 and Class 3 Commercial Delivery vehicles into the market in 2023.
With the additional manufacturing capacity, total production volumes are expected to exceed Mullen's previous business plan projections.
The commercial portfolio is expected to increase by over 50% with the addition of ELMS assets.
Mullen's cash on hand and funding commitment of up to $240 million provides the company with the access of up to $275 million to close acquisition and fund vehicle launches. It held $60.9 million in cash and equivalents as of June 30, 2022.
The company's majority ownership acquisition of Bollinger Motors was closed in August 2022.
Price Action: MULN shares are trading higher by 71.9% at $0.3721 on the last check Wednesday.