Mullen Automotive, Inc. (MULN) shares are experiencing a significant decline on Friday following the company’s announcement of a 1-for-100 reverse stock split. This move, effective at market open on September 17, will adjust the company’s share price to reflect the split. The primary objective of this reverse stock split is to elevate Mullen’s share price to meet the Nasdaq’s minimum bid price requirement of $1.
Shareholders approved this reverse stock split, ranging from 1-for-2 to 1-for-100, on September 9 during a special meeting. However, it’s crucial to note that meeting the minimum bid price requirement after the split is not guaranteed.
While direct stock purchases through brokerage platforms remain an option, investors seeking exposure to Mullen Automotive can also consider alternative methods. Exchange-traded funds (ETFs) that track the Consumer Discretionary sector, which Mullen belongs to, offer a diversified approach to gain exposure to the company. These ETFs typically hold shares in a range of large, liquid companies within that sector, enabling investors to participate in the broader industry trends.
At the time of writing, Mullen Automotive shares have plummeted by 21.7%, trading at 13 cents. This downward trend suggests that investors are reacting negatively to the reverse stock split announcement. It remains to be seen how the market will respond to this significant corporate action in the coming days.
