Mullen Announces Adoption of Limited Duration Stockholder Rights Plan

The Rights Agreement is intended to promote the fair and equal treatment of all stockholders and is similar to rights plans adopted by other publicly held companies

The Rights Agreement is not a financing transaction and no additional shares of Common Stock or Preferred Stock or warrants or convertible notes are currently being issued in connection with the Rights Agreement

BREA, Calif., May 06, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, today announces that its Board of Directors (the “Board”) has unanimously adopted a limited duration stockholder rights plan (the “Rights Plan”).

The Rights Plan is intended to promote the fair and equal treatment of all stockholders and is similar to rights plans adopted by other publicly held companies. The Rights Plan is designed to enable all Company stockholders to realize the long-term value of their investment and is intended to protect Mullen and its stockholders from efforts by a single stockholder or group to obtain control of the Company without paying a control premium.

The Rights Agreement is not a financing transaction and no additional shares of Common Stock or Preferred Stock or warrants or convertible notes are currently being issued in connection with the dividend distribution of the Rights. In general terms, the Rights Agreement works by imposing a significant penalty upon any person or group that acquires beneficial ownership of 10% or more of the shares of Common Stock without the prior approval of the Board.

The Rights Plan is effective immediately and will expire on May 1, 2025. Additional information regarding the Rights Plan is contained in the Form 8-K filed by Mullen with the U.S. Securities and Exchange Commission (the “SEC”), which is expected to be available at approximately 10 a.m. Eastern on Monday, May 6, 2024.

About Mullen

Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of commercial electric vehicles (“EVs”) with two United States-based vehicle plants located in Tunica, Mississippi, (120,000 square feet) and Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen began commercial vehicle production in Tunica. In September 2023, Mullen received IRS approval for federal EV tax credits on its commercial vehicles with a Qualified Manufacturer designation that offers eligible customers up to $7,500 per vehicle. As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are California Air Resource Board (CARB) and EPA certified and available for sale in the U.S.