Mullen Automotive announced on Tuesday that it has eliminated $17.5 million in company debt and reduced its overall indebtedness from “more than $30 million last year to an estimated $11 million currently”. This elimination of debt leaves the company in its best financial health ever to “maintain its focus on its various EV initiatives,” as said by the CEO David Michery.
“We continue to make great progress on our overall company financial health. This recent elimination of debt makes us financially stronger now, allowing the Company to maintain its focus on its various EV initiatives,” CEO commented.
The EV maker says the $17.5 million was associated with a secured convertible promissory note executed on July 23, 2020, with DBI Lease Buyback Servicing LLC, an affiliate of Drawbridge Investments LLC.
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According to a SEC form filed on Friday evening, Mullen Automotive CEO David Michery sold a total of 350,000 shares at an average price of $1.1199 on June 29, one day before the end of the second quarter. The shares were sold in multiple transactions at prices ranging from $1.11 to $1.250 per share.
During the last interview with Benzinga in early June, Mullen’s CEO was asked about the insider trading, namely his recent sales. At the time, the host asked: ” […] when I look out to the insider transactions from Mullen, I don’t see a lot of buying… I see some selling of you recently, can you just speak a little bit about the full process there”. David Michery answered “Just decided to sell some stock, nothing more and nothing less.”
When asked about other plans to sell more shares, Mullen‘s CEO added that “Every officer or director has an opportunity to sell based on the 1% rule per quarter and they choose to do it they do, if they don’t they don’t. I chose periodically to be able to take advantage of what I am allowed to do under SEC rules”.