Mullen’s money readily available and funding dedication of as much as $240 million offers the corporate with entry of as much as $275 million to shut acquisition and fund car launches
BREA, Calif., Oct. 19, 2022 (GLOBE NEWSWIRE) — by way of InvestorWire — Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an rising electrical car (“EV”) producer, broadcasts the US Bankruptcy Court approval on Oct. 13th, 2022 of its acquisition of electrical car firm ELMS’s (Electric Last Mile Solutions) belongings in an all money buy. In the Chapter 7 accepted transaction Mullen will purchase ELMS’s manufacturing plant, all stock and mental property.
Acquisition advantages embody:
- The manufacturing facility in Mishawaka, IN offering Mullen with the aptitude to provide as much as 50,000 autos per yr
- Allows acceleration of the path to manufacturing and marketplace for Mullen FIVE and Bollinger B1, B2 retail autos 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 autos into Market in 2023.
- The platform and plant acquisition leads to a big discount of the Company’s beforehand forecast total spend
The Mishawaka, IN manufacturing facility that kinds half of the Company’s acquisition, beforehand produced General Motors Hummer H2 SUV and SUT and in addition subsequently contract manufactured the Mercedes-Benz R-Class car. This makes it the proper match for manufacturing of the Mullen and Bollinger portfolio of client autos. The ELMS asset acquisition, and the current acquisition of the bulk possession of Bollinger Motors, provides Mullen the flexibility to combine Bollinger’s car platforms, B1 and B2 alongside with Mullen’s FIVE and FIVE RS platforms into an already current and succesful excessive quantity manufacturing facility. As a consequence, this may speed up launch of the Bollinger B1, B2 retail autos by 12 plus months.
Manufacturing optimization will embody shifting the Mullen FIVE EV Crossover manufacturing to the Mishawaka Factory from the Tunica, MS facility. Mullen FIVE manufacturing is deliberate to start manufacturing in 2024. Tunica will now develop into the Commercial Manufacturing Center and capitalize to provide all Mullen and Bollinger Class 1 to six industrial autos.
With the extra Manufacturing capability, complete manufacturing volumes are anticipated to exceed Mullen’s earlier business plan projections. The industrial portfolio is anticipated to extend over 50% with the addition of the ELMS belongings and the retail portfolio is anticipated to greater than double with the addition of Bollinger autos and the manufacturing capability of Mishawaka.
The Company’s majority possession acquisition of Bollinger Motors was closed in August 2022 with a mixture of inventory and money. The ELMS acquisition might be accomplished as an all-cash buy.
Highlights of the Acquisition:
Per the Asset Purchase Agreement which may be considered from the Company’s recent public filings, the ELMS Assets bought by Mullen have been as follows:
- all Intellectual Property, together with, with out limitation, the registered mental property particularly listed within the Asset Purchase Agreement
- all stock together with autos, completed and unfinished, completed items, half modules element elements, uncooked supplies, tooling, together with however not restricted to product particular tooling, all manufacturing knowledge that’s required or moderately useful for the meeting of the Class 1 Electric industrial supply vans and Class 3 Commercial Delivery Cab Chassis
- buy of actual property situated in Mishawaka, Indiana, collectively with all buildings, enhancements and fixtures
- all tangible private property together with gear, equipment, furnishings, provides, laptop {hardware}, knowledge networks, servers (with knowledge and software program), communication gear, software program, discs, and all different knowledge 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 leverage all its acquired assets to shorten its production path and aggressively expand into the commercial and consumer EV market,” stated 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 “proceed,” “will,” “might,” “might,” “ought to,” “anticipate,” “anticipated,” “plans,” “intend,” “anticipate,” “imagine,” “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
www.MullenUSA.com
Wire Service Contact:
InvestorWire (IW)
Los Angeles, California
www.InvestorWire.com
212.418.1217 Office
[email protected]
