This post was originally published on this site
Brea-based Mullen Automotive Inc. (Nasdaq: MULN) dropped 30% to $5.77 per share after acquiring an additional 21% of Bollinger Motors Inc. on Monday.
This brings Mullen’s majority stake up to 95% in the Michigan-based manufacturer of electric commercial trucks.
A court-ordered receivership at Bollinger was recently discharged and removed, allowing the EV maker to continue operating independently under Mullen.
Mullen said the “transaction increases shareholder equity by approximately $3.5 million.”
“Our investment in acquiring the vast majority of remaining shares and resolving certain significant outstanding debt demonstrates our belief in and continued commitment to Bollinger’s vehicle lineup and future,” Mullen chairman and chief executive David Michery said in a statement.
Mullen’s latest reverse 1-for-100 stock split also went into effect on Monday to help the automaker meet the minimum bid price requirement; it was previously trading below 10 cents last week.