Summary

  • Mullen Automotive Inc. is an electric vehicle company that operates in various verticals of businesses focused within the automotive industry
  • The Company has two electric vehicles under development, one of which the company expect to begin delivery of in the second quarter of 2024.
  • In Sept 2022 Mullen Acquired Majority Ownership in Bollinger Motors
  • In Dec 2022 Mullen Completes Acquisition of ELMS Assets

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Mullen Automotive Inc. (Nasdaq: MULN) operates a Southern California-based electric vehicle company that operates in various verticals of businesses focused within the automotive industry. The Company has two electric vehicles under development, one of which the company expect to begin delivery of in the second quarter of 2024. Mullen has several divisions that operate synergistic businesses, being: CarHub, a digital platform that leverages artificial intelligence to offer an interactive solution for buying, selling and owning a car, and Mullen Energy, a division focused on advancing battery technology and emergency point-of-care solutions.

Recent Developments

Mullen Completes Acquisition of ELMS Assets1

December 01, 2022; Mullen Automotive, Inc closed on the acquisition of Electric Last Mile Solutions' (“ELMS”) assets on Nov. 30, 2022, in an all-cash purchase valued at $105 million.

The ELMS asset acquisition of all IP and inventory will allow Mullen to launch into the commercial market much earlier than previously planned. Upon the completion of final certification, it is anticipated that Mullen will be delivering Class 1 products in Q1 2023, followed by its Class 3 vehicles in Q2.

The ELMS Mishawaka, Indiana, factory, which previously produced General Motors’ Hummer H2 and the Mercedes-Benz R-Class vehicle, is a perfect fit for the production of the Mullen FIVE SUV and the Bollinger B1 and B2 platforms. Taking possession of this plant in its current condition will allow both vehicles to be launched with significantly less capital than previously anticipated and bring forward their respective launch dates.

Mullen Acquired Majority Ownership in Bollinger Motors2

September 08, 2022; Mullen Automotive, Inc. announces acquisition of a controlling interest in EV truck innovator Bollinger Motors. This is Mullen’s first EV acquisition and propels the Company into the medium-duty truck classes 3-6, along with the B1 and B2 sport utility trucks. The purchase price is $148.2 million in cash and stock for a 60% controlling interest, which gives Mullen the majority ownership of Bollinger Motors, Inc. and positions Bollinger to capture the electric sport utility and commercial vehicle markets.

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Financial Highlights

 June 30,2022 Results

The company finish quarter with approximately $99 million in cash and cash equivalents on hand as of Aug. 8, 2022.3

  • Asset growth of 391% - Asset growth was primarily from cash from financing activities along with increased property and equipment.
  • Positive working capital $27,656,446 - Working capital was a positive variance due to the paydowns in current notes and cash received from financing activities.
  • $318 million in financial commitments - The committed capital positions Mullen for growth over the remainder of 2022 and 2023.
  • Change in debt –77% - The 77% debt reduction minimizes debt overhang problem and implies that equity holders can invest in a company positioned for growth and sound financial performance.
  • 281% increase in R&D spending - Company has increased its spending for R&D, which primarily relates to engineering costs for the Mullen FIVE and Mullen EV cargo van programs.

Program Update

Mullen is pleased to announce progress recently made in both engineering and manufacturing areas by advancing its solid-state battery technology to the pack level and continuing to build up its battery assembly operation.

Mullen recently opened Irvine, California-based automotive center and is extensively hiring for expansion requirements related to Mullen FIVE EV program.

Mullen is expanding its presence into the Midwest with the addition of the Detroit EV Technology team, focusing on the development of EV technologies for Mullen’s portfolio of commercial vans. Mullen has already hired close to 20 new employees for the Midwest operations and expects to have upward of 50 employees by the end of this year.

FIVE EV program development continues with work progressing in BIW, interior, thermal packaging, and infotainment.

Mullen Class 1 EV Cargo Van successfully updated with larger optional 79.2 kWh battery pack, which can extend range up to 200 miles.

$7 million of robotics and testing equipment added to Tunica’s AMEC facility in support of the Mullen EV Cargo Van program. This includes establishing unique robotic applications to further enhance existing manufacturing processes and state-of-the-art PLC and robotic interfaces for training.

Mullen signed a binding agreement with DelPack Logistics, LLC, an Amazon Delivery Services Partner, to purchase up to 600 Mullen Class 1 and 2 EV cargo vans over the next 18 months. The first 300 fully homologated for the United States Mullen Class 2 EV Cargo Vans can be delivered to DPL by Nov. 30, 2022.

Mullen continues successful patent work with recently submitted provisional patent application on PERSONA technology for the Mullen FIVE EV Crossover. PERSONA is the heart of the vehicle technology in the Mullen FIVE and includes facial recognition and vehicle personalization for the driver and passengers.

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Manufacturing

Mullen has announced the optimal manufacturing footprint to build its range of fully electric vehicles.4

Mishawaka, IN.

On Dec. 1st, 2022, Mullen announced the acquisition of Electric Last Mile Solutions (ELMS) assets, including the factory in Mishawaka, IN. Previously, the Mishawaka plant produced General Motors Hummer H2 and the Mercedes-Benz R-Class vehicle, and is a perfect fit for the production of the Mullen FIVE SUV and the Bollinger B1 and B2 platforms.

Tunica, MS.

With proximity to all major rail lines, interstates, Mississippi river systems, and air logistics, its Tunica factory is located in a primary logistical center of North America. The automotive suppliers of the Southeast corridor, the Midsouth Tennesse region, and the North Delta region. Tunica will be home to production for Class 1 - 6 commercial EVs.

Company History

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References

  1. ^ https://news.mullenusa.com/mullen-automotive-officially-closes-on-acquisition-of-elms-assets-takes-possession-of-plant-in-mishawaka-ind.-all-intellectual-property-and-related-inventory
  2. ^ https://news.mullenusa.com/mullen-automotive-acquires-controlling-interest-in-ev-truck-innovator-bollinger-motors-inc
  3. ^ https://news.mullenusa.com/mullen-automotive-announces-preliminary-third-quarter-results
  4. ^ https://www.mullenusa.com/manufacturing
Tags: US:MULN USA
Created by Asif Farooqui on 2022/12/09 05:33
     
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