Why Mullen Automotive Shares Are Trading Higher Today

EV manufacturer Mullen Automotive Inc MULN has announced an investor financing moratorium for the balance of 2023.

The company said it has sufficient capital on hand for at least the next 12 months. 

Remaining investor option expires on June 30, 2023, and the company assets are unencumbered with the exception of $7.3 million outstanding debt.

As of its most recently filed Form 10-Q on March 31, 2023, the company's book value was $2.08 per share.

But Mullen has been trading at a steep discount to its current cash position of $135 million or $0.38 per share as of June 13, 2023. 

Since March 31, 2023, the company's stock has declined over 95% from $3.25 per share to $0.16 per share on June 20, 2023. 

As of March 31, 2023, it had $86.7 million of cash available for operations and $0.68 of cash value per share.

Mullen said a majority ownership in Bollinger Motors and certain assets related to Electric Last Mile Solutions (ELMS) had added valuable, unencumbered assets to the balance sheet totaling $253 million.

Price Action: MULN shares are trading higher by 15% at $0.1847 in premarket on the last check Wednesday.