Shares of Mullen Automotive Inc. blasted higher in very active trading Thursday, after the California-based electric vehicle maker enacted a much-needed reverse stock split. Separately, the company said it delivered 38 additional Class 3 low-cab-forward trucks to Randy Marion Automotive Group, which should result in Mullen recording $2.5 million in revenue.
The stock
MULN,
+85.63%
rocketed 82.8% in afternoon trading, and has traded within an intraday range of down 13.1% and up 133.8%. The stock has been halted for volatility eight times since the opening bell at 9:30 a.m. Eastern. Trading volume spiked to 18.8 million shares, compared with a split-adjusted full-day average volume of about 637,200 shares. Earlier this week, Mullen shareholders voted, after being given a second chance, to authorize a reverse stock split in the range of 1-for-2 to 1-for-100. The company then said it would go ahead with a 1-for-100 reverse split, which effectively multiplies the stock price by 100. The company said the primary reason for the split was to bring the company in compliance with the $1.00 minimum bid requirement to stay listed on the Nasdaq exchange. The stock had closed at a pre-split record low of 8 cents on Wednesday. After the split, it was recently trading at around $14.96. Including the previous reverse splits this year of 1-for-9 in August and 1-for-25 in May, the stock price has been multiplied by 22,500 times. That means if an investor owned 22,500 shares in April, they now have 1 share. In light of the prior reverse stock splits implemented by the company and the dilutive impact those have had on shareholders, Chief Executive David Michery wrote in a letter to shareholders that presenting another reverse split to the board of directors was “one of the most di …
Article Attribution | Read More at Article Source
The stock
MULN,
+85.63%
rocketed 82.8% in afternoon trading, and has traded within an intraday range of down 13.1% and up 133.8%. The stock has been halted for volatility eight times since the opening bell at 9:30 a.m. Eastern. Trading volume spiked to 18.8 million shares, compared with a split-adjusted full-day average volume of about 637,200 shares. Earlier this week, Mullen shareholders voted, after being given a second chance, to authorize a reverse stock split in the range of 1-for-2 to 1-for-100. The company then said it would go ahead with a 1-for-100 reverse split, which effectively multiplies the stock price by 100. The company said the primary reason for the split was to bring the company in compliance with the $1.00 minimum bid requirement to stay listed on the Nasdaq exchange. The stock had closed at a pre-split record low of 8 cents on Wednesday. After the split, it was recently trading at around $14.96. Including the previous reverse splits this year of 1-for-9 in August and 1-for-25 in May, the stock price has been multiplied by 22,500 times. That means if an investor owned 22,500 shares in April, they now have 1 share. In light of the prior reverse stock splits implemented by the company and the dilutive impact those have had on shareholders, Chief Executive David Michery wrote in a letter to shareholders that presenting another reverse split to the board of directors was “one of the most di …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]