Mullen Automotive Inc., the California-based EV startup, bids “almost $100 million in total consideration” for the insolvent rival Electric Last Mile Solutions Inc., according to Automotive News.
Despite previous acquisitions and collaborations, Mullen Automotive has not gained much momentum lately. In favor of its larger rivals that are actually producing electric vehicles, many analysts are still pessimistic about MULN stock. However, Mullen has made it clear that it is not surrendering as it announced its most recent bid.
As revealed by the filing of Electric Last Mile’s Chapter 7 case, competing bids must be submitted by October 3, while the auction will be held on October 7.
Following Mullen’s announcement that it was buying a controlling share in Michigan-based competitor Bollinger Motors in a cash-and-stock deal, the offer’s specifics have now been revealed. Remarkably, Mullen aims to offer electric mobility comprising a sports vehicle and a small SUV.
In an era of overstrained supply chains and inflated costs, these businesses are among a handful of EV startups trying to make headway in a market dominated by Tesla Inc.
The stock of Mullen, which has plummeted by roughly 90% this year, was shown to no longer meet Nasdaq’s minimum share price standards a day after the Bollinger sale was disclosed.
Notably, the firm declared bankruptcy in June. According to the trusted source, 245 prospective strategic or financial partners may have been approached about purchasing Electric Last Mile’s assets. That said, 39 of those have signed non-disclosure agreements for due diligence and perhaps submit an offer. The trustee stated in the Friday filing that acquiring Mullen as a stalking horse bidder “represents a tremendous benefit to the debtors’ estates and creditors.”
In New York, the shares decreased 5.7% at 12:22 p.m. on Monday, September 19.
