BREA, Calif. - Mullen Automotive Inc. (NASDAQ: NASDAQ:MULN), an emerging electric vehicle (EV) manufacturer, announced today that Bollinger Motors has received $10 million in debt financing from its founder, Robert Bollinger. This funding is aimed at accelerating the production and sale of the Bollinger B4, an all-electric Class 4 truck.
The Bollinger B4 trucks, boasting over 70% US-made components, are assembled at Roush Industries in Livonia, Michigan. The commencement of full-scale production was marked in September, a significant milestone for the company as it begins to distribute the vehicles to customers and dealers across the nation.
David Michery, CEO and chairman of Mullen Automotive, recognized Robert Bollinger's ongoing commitment to the company and its growth, which he believes is instrumental in establishing the Bollinger brand. The financial details of this transaction will be disclosed in a forthcoming Current Report on Form 8-K to be filed with the Securities and Exchange Commission.
Mullen Automotive has made strides in the EV market with its commercial vehicle production in Tunica, Mississippi, and Mishawaka, Indiana. The company's vehicles, including the Mullen ONE and Mullen THREE, have received certification from the California Air Resource Board (CARB) and the Environmental Protection Agency (EPA), and are now available for sale in the U.S. In addition, the Mullen THREE has been approved for significant cash vouchers through CARB's HVIP program, enhancing its affordability.
The company has expanded its commercial dealer network, adding Papé Kenworth to its roster, which also includes dealers like Pritchard EV and National Auto Fleet Group. This expansion enhances Mullen's sales and service coverage across key U.S. markets.
Bollinger Motors, majority-owned by Mullen Automotive since September 2022, has positioned itself as a producer of innovative Class 4 all-electric commercial chassis cab trucks. The recent financial backing from its founder underscores the confidence in the company's direction and the growing market for electric commercial vehicles.
This article is based on a press release statement.
In other recent news, Mullen Automotive has secured $10 million in non-dilutive debt financing from Robert Bollinger, the founder of Bollinger Motors, to accelerate the production and distribution of the Bollinger B4, an all-electric Class 4 commercial truck. The investment is expected to enhance Bollinger Motors' capabilities as the company recently commenced full-scale production of the B4 model, with trucks currently being assembled at Roush Industries in Livonia, Michigan. In addition, Mullen Automotive has settled approximately $4.5 million in secured promissory notes through the issuance of 340,000 shares of its common stock, effectively managing its financial liabilities.
Meanwhile, the company has regained compliance with Nasdaq's minimum bid price requirement, as confirmed by a formal notice from The Nasdaq Stock Market LLC. Mullen Automotive has also launched Mullen Credit Corporation, a subsidiary aimed at supporting its dealership network. This aligns with the company's strategy to accommodate its rapid business growth and transition from pre-revenue product development to revenue generation.
In financial developments, Mullen issued convertible notes and warrants, raising approximately $12.5 million. The company also secured significant orders from Papé Kenworth and Volt Mobility, totaling $3.2 million and $210 million respectively. These are among the recent developments in Mullen Automotive's operations.
InvestingPro Insights
As Mullen Automotive (NASDAQ: MULN) advances its electric vehicle initiatives, including the recent $10 million debt financing for Bollinger Motors, investors should consider some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Mullen's market capitalization stands at a modest $5.02 million, reflecting the company's early-stage status in the competitive EV market. The company's revenue for the last twelve months as of Q3 2024 was $0.16 million, with a concerning revenue growth decline of -49.17% over the same period.
InvestingPro Tips highlight some challenges facing the company. One tip notes that Mullen is "quickly burning through cash," which aligns with the company's efforts to ramp up production and expand its dealer network. Another tip indicates that the company "may have trouble making interest payments on debt," which could be a concern given the recent debt financing for Bollinger Motors.
On a more positive note, an InvestingPro Tip suggests that Mullen is "trading at a low Price / Book multiple," with the Price to Book ratio at 0.14 as of Q3 2024. This could potentially indicate that the stock is undervalued, although investors should consider this in the context of the company's overall financial health and growth prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Mullen Automotive, providing a deeper understanding of the company's financial position and market performance.
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