Mullen Automotive (NASDAQ:MULN) shares are sharply declining today after the Electric vehicle maker received a delisting notification from Nasdaq. This came as the company failed to meet the September 5 deadline to regain compliance with the exchange’s requirement of a minimum bid price of $1.
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Yesterday, Mullen requested a hearing before the Listing Qualifications Panel of Nasdaq to seek a further extension of the timeline and present its plan to regain compliance. Without this request, the automotive company would have faced delisting on September 15.
The Panel has the discretion to grant up to an additional 180 days to the company for regaining compliance. Despite a reverse stock split and the company’s CEO, David Michery, recently acquiring shares in the company, the stock has plummeted by nearly 99.7% over the past year.
Furthermore, Mullen has taken on $100 million in new debt, reported a cash burn of $128 million over the past nine months, and witnessed its net loss per share nearly triple to $11.14 in the third quarter compared to the year-ago period.
These metrics continue to more than weigh on investor sentiment in the stock, which is currently trading at a price-to-sales multiple of 276.55.
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