Mullen Automotive, Inc. (NASDAQ: MULN) operates as an emerging electric vehicle (EV) manufacturer. Shares of the EV company soared 57% during trading on Wednesday, October 19, 2022. Over the past three months, Mullen Automotive has seen average daily volume of 79.24 million shares. However, volume of 491.89 million shares or dollar volume of around $167.24 million, exchanged hands during the day’s trading.
Shares of Mullen Automotive skyrocketed after the company announced the U.S. Bankruptcy Court has approved its acquisition of Electric Last Mile Solutions’ (ELMS) electric vehicle assets in an all-cash purchase. As a result of the completed asset acquisition out of Chapter 7 bankruptcy, Mullen now owns ELMS’s Mishawaka, Indiana-based manufacturing plant, all available inventory and intellectual property.
The highlight of the asset acquisition is the Mishawaka producing factory, which can produce up to 50,000 vehicles per year. The facility previously was the production site for GM’s Hummer H2 SUV and later a contracted manufacturer of the Mercedes-Benz R-Class vehicle.
As a result of the recent acquisition of Bollinger Motor and its B1 and B2 vehicle platforms, Mullen is already working to integrate the B1 & B2 platforms into its FIVE and FIVE RS models. Furthermore, Mullen says it will be transferring production of its FIVE EV crossover vehicle to the new Mishawaka factory from its Tunica, MS facility. The new facility subsequently helps Mullen accelerate its path to production of its vehicles by an estimated twelve months.
Other highlights of the ELMS asset acquisition, as noted by Mullen Automotive:
- all Intellectual Property, including, without limitation, the registered intellectual property specifically listed in the Asset Purchase Agreement
- all inventory including vehicles, finished and unfinished, finished goods, part modules component parts, raw materials, tooling, including but not limited to product specific tooling, all manufacturing data that is required or reasonably helpful for the assembly of the Class 1 Electric commercial delivery vans and Class 3 Commercial Delivery Cab Chassis
- purchase of real property located in Mishawaka, Indiana, together with all buildings, improvements and fixtures
- all tangible personal property including equipment, machinery, furniture, supplies, computer hardware, data networks, servers (with data and software), communication equipment, software, discs, and all other data 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,” said David Michery, CEO and chairman of Mullen Automotive.
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