Mullen Automotive announced Monday morning the sign of a binding agreement with the Amazon Delivery service partner DelPack Logistics to acquire up to 600 Mullen Class 2 EV cargo vans over the next 18 months — until January 2024. In the statement, Mullen added that the first 300 units can be delivered to DPL by the end of November at the request of the company.
In reaction to the announcement of the binding contract, the stock price rose about 20% during the pre-market reaching a price of $1.42 per share, a new 2-week high. Two days later, by the end of Wednesday’s Pre-Market, Mullen stock gave up gains related to the announcement losing 26% from the peak and is now trading at $1.05 per share, as of 09:20 AM EST.
In the meantime, Delpack denied that it has entered into a binding contract with the EV maker to purchase up to 600 vans but rather “an agreement to consider buying EV Fleet vans, if all conditions are met”.
In response to https://news.mullenusa.com/mullen-automotive-signs-binding-agreement-with-delpack-logistics-llc-an-amazon-delivery-services-partner-for-class-1-2-ev-cargo-vans , and to address an overwhelming number of inquiries: Delpack Logistics did NOT go into a binding contract with Mullen Automotive (NASDAQ: MULN) to purchase up to 600 vans. Alternatively, Delpack did go into an agreement to consider buying EV Fleet vans, if all conditions are met.
Furthermore, Delpack has plans to participate in the Pilot program by acquiring Mullen 2 EV Fleet vans for evaluation and testing purposes. Should Delpack find Mullen EV Fleet vans suitable for our business purposes, and if approved by Amazon Logistics, Delpack logistics will consider buying more Mullen EV Fleet vans. Delpack is excited to take steps forward to a reduction of emissions of carbon dioxide as well as to take part in decreasing the effects of global warming”.
BE THE FIRST ONE TO GET THE NEWS
On Monday, Mullen CEO David Michery said the agreement was “a milestone for Mullen Automotive” adding that DelPack “is a leader in last mile package delivery and this agreement puts our Class 1 cargo van program front and center for last mile delivery opportunities.”
Recently, the company filed a form with SEC inviting shareholders for its Annual Meeting to be held at Nasdaq Building in New York on July 26. Among the themes to discuss in the meeting, the shareholders will vote to approve the increase of the aggregate number of authorized shares to 2,250,000,000 shares.