Shares of Mullen Automotive Inc.
MULN,
took an 17.6% dive into record-low territory in afternoon trading Monday, as investors awaited the outcome of a shareholder vote that could determine whether the electric vehicle maker’s stock will remain listed on the Nasdaq. The company had said late Friday that it will reconvene a special meeting of shareholders on Monday to vote on proposal to enact a reverse stock split, in the range between 1-for-2 and 1-for-100, to lift the stock price enough to satisfy the Nasdaq’s requirement that the stock has a closing bid price of $1 for a minimum of 20 consecutive trading sessions on or before Jan. 22. As of Friday, Mullen said there weren’t enough votes to pass the reverse-stock-split proposal. The stock, which was trading recently at about 11.95 cents, has closed below $1 every session since Aug. 16. A reverse stock split would effectively raise the price of the stock by consolidating shares outstanding; a 1-for-100 reverse split would multiply the current share price by 100. The company had enacted a 1-for-25 reverse split in May and a 1-for-9 reverse split in August, which combined effectively multiplied the stock by 225. The stock has plunged 99.8% this year.
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