#EV #Stock Mullen
(NASDAQ: $MULN) Continues
Acquisition Path with Purchase of ELMS Assets Including Factory in Mishawaka,
IN, Enabling #EVProduction for Retail and Commercial Vehicle Lines; @Mullen_USA
Manufacturing Capability to Produce 50,000 Vehicles per
Year
Mullen’s cash on hand and funding commitment
of up to $240 million provides the company with access of up to $275 million to
close acquisition and fund vehicle launches
BREA, Calif., October 19, 2022 – (Investorideas.com
Newswire) Mullen
Automotive, Inc. (NASDAQ:MULN) (“Mullen” or the “Company”), an emerging electric
vehicle (“EV”) manufacturer, announces the US Bankruptcy Court approval on Oct.
13th, 2022 of its acquisition of electric vehicle company ELMS’s
(Electric Last Mile Solutions) assets in an all cash purchase. In the Chapter 7 approved transaction Mullen
will acquire ELMS’s manufacturing plant, all inventory and intellectual
property.
Read this news, featuring MULN in full at https://www.investorideas.com/CO/MULN/news/2022/10191Acquisition-ELMS-Assets.asp
Acquisition benefits include:
·
The factory
in Mishawaka, IN providing Mullen with the capability to produce up to 50,000
vehicles per year
·
Allows acceleration of the path to production
and market for Mullen FIVE and Bollinger B1, B2 retail vehicles by 12 plus
months
·
Commercial Product Platforms to be assembled at Mullen’s
Tunica MS. Facility, for Launch of Mullen Class 1 and Class 3 Commercial
Delivery vehicles into Market in 2023.
·
The platform and plant acquisition results in a
significant reduction of the Company’s previously forecast overall spend
The Mishawaka,
IN factory that forms part of the Company’s acquisition, previously produced
General Motors Hummer H2 SUV and SUT and also subsequently contract
manufactured the Mercedes-Benz R-Class vehicle. This makes it the perfect fit
for production of the Mullen and Bollinger portfolio of consumer vehicles. The
ELMS asset acquisition, and the recent acquisition of the majority ownership of
Bollinger Motors, gives Mullen the ability to integrate Bollinger’s vehicle
platforms, B1 and B2 along with Mullen’s FIVE and FIVE RS platforms into an
already existing and capable high volume manufacturing facility. As a result,
this will accelerate launch of the Bollinger B1, B2 retail vehicles by 12 plus
months.
Manufacturing
optimization will include moving the Mullen FIVE EV Crossover production to the
Mishawaka Factory from the Tunica, MS facility. Mullen FIVE production is planned
to begin production in 2024. Tunica will now become the Commercial
Manufacturing Center and capitalize to produce all Mullen and Bollinger Class 1
to 6 commercial vehicles.
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 over 50% with the addition of the ELMS assets and the
retail portfolio is expected to more than double with the addition of Bollinger
vehicles and the manufacturing capacity of Mishawaka.
The Company’s majority ownership acquisition of Bollinger Motors was
closed in August 2022 with a combination of stock and cash. The ELMS
acquisition will be completed as an all-cash purchase.
Highlights of
the Acquisition:
Per the Asset
Purchase Agreement which can be viewed from the Company’s recent
public filings, the ELMS
Assets purchased by Mullen were as follows:
•
all Intellectual Property,
including, without limitation, the registered intellectual property
specifically listed in the Asset Purchase Agreement
·
all inventory
including vehicles, finished and unfinished, finished goods, part modules
component parts, raw materials, tooling, including but not limited to product
specific tooling, all manufacturing data that is required or reasonably helpful
for the assembly of the Class 1 Electric commercial delivery vans
and Class 3 Commercial Delivery Cab Chassis
·
purchase of
real property located in Mishawaka, Indiana, together with all buildings,
improvements and fixtures
·
all tangible
personal property including equipment, machinery, furniture, supplies, computer
hardware, data networks, servers (with data and software), communication
equipment, software, discs, and all other data storage media
“Mullen’s
acquisition of Bollinger was one of the largest transactions of its kind in the
EV market. Upon closing the ELMS transaction, the Company will be in a position
to strategically lever all its acquired assets to shorten its production path
and aggressively expand into the commercial and consumer EV market,” said David
Michery, CEO and chairman of Mullen Automotive. "
About Mullen
Mullen is a Southern California-based automotive company that owns and
partners with several synergistic businesses working toward the unified goal of
creating clean and scalable energy solutions. Mullen has evolved over the past
decade in sync with consumers and technology trends. Today, the Company is
working diligently to provide exciting EV options built entirely in the United
States and made to fit perfectly into the American consumer’s life. Mullen
strives to make EVs more accessible than ever by building an end-to-end
ecosystem that takes care of all aspects of EV ownership.
Forward-Looking Statements
Certain statements in this press release that are not historical
facts are forward-looking statements within the meaning of Section 27A of the
Securities Exchange Act of 1934, as amended. Any statements contained in this
press release that are not statements of historical fact may be deemed
forward-looking statements. Words such as "continue,"
"will," "may," "could," "should,"
"expect," "expected," "plans,"
"intend," "anticipate," "believe,"
"estimate," "predict," "potential" and similar
expressions are intended to identify such forward-looking statements. All
forward-looking statements involve significant risks and uncertainties that
could cause actual results to differ materially from those expressed or implied
in the forward-looking statements, many of which are generally outside the
control of Mullen and are difficult to predict. Examples of such risks and
uncertainties include but are not limited to whether the closing of the ELMS
acquisition will occur and if so, be beneficial to the Company; whether the
anticipated manufacturing capability to produce 50,000 vehicles per year will
prove reliable; whether Mullen’s cash availability will be sufficient for
closing and funding of vehicle launches; whether the platform and
plant acquisition will result in the anticipated reduction of the Company’s
previously forecast spend; whether utilizing the manufacturing facility in Mishawaka, IN will result in accelerating development of the Bollinger
B1, B2 retail vehicles by 12 plus months, or at all; whether the anticipated manufacturing optimization and forecast total
Mullen and Bollinger vehicle production volumes detailed in this Press Release
will materialize; whether the production of the Mullen FIVE will commence in
2024; whether the ELMS acquisition will
be completed as an all-cash purchase; whether the Company’s cash on hand and other funding commitments
will realize sufficient proceeds to accomplish closing the acquisition and/or
the funding of vehicle launches; and whether the Company will be
successful with its efforts to lever all its acquired assets to shorten its
production path and expand into the commercial and consumer EV markets. Additional examples of such risks and
uncertainties include but are not limited to: (i) Mullen’s ability (or
inability) to obtain additional financing in sufficient amounts or on
acceptable terms when needed; (ii) Mullen's ability to maintain existing, and
secure additional, contracts with manufacturers, parts and other service
providers relating to its business; (iii) Mullen’s ability to successfully
expand in existing markets and enter new markets; (iv) Mullen’s ability to
successfully manage and integrate any acquisitions of businesses, solutions or
technologies; (v) unanticipated operating costs, transaction costs and actual
or contingent liabilities; (vi) the ability to attract and retain qualified
employees and key personnel; (vii) adverse effects of increased competition on
Mullen’s business; (viii) changes in government licensing and regulation that
may adversely affect Mullen’s business; (ix) the risk that changes in consumer
behavior could adversely affect Mullen’s business; (x) Mullen’s ability to
protect its intellectual property; and (xi) local, industry and general
business and economic conditions. Additional factors that could cause actual
results to differ materially from those expressed or implied in the
forward-looking statements can be found in the most recent annual report on
Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed
by Mullen with the Securities and Exchange Commission. Mullen anticipates that
subsequent events and developments may cause its plans, intentions and
expectations to change. Mullen assumes no obligation, and it specifically
disclaims any intention or obligation, to update any forward-looking statements,
whether as a result of new information, future events or otherwise, except as
expressly required by law. Forward-looking statements speak only as of the date
they are made and should not be relied upon as representing Mullen’s plans and
expectations as of any subsequent date.
Contact:
Mullen Automotive, Inc.
+1 (714) 613-1900
Wire Service
Contact:
InvestorWire (IW)
Los Angeles, California
212.418.1217 Office
Mullen Automotive, Inc. (OTCQB:MULN)
is a featured EV stock on
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