The California-based EV maker Mullen Automotive announced on Tuesday that it has extended the maturity of a senior secured convertible note of $28 million, originally due in July 2022, by two years.
Two years ago, the Company originally entered into a secured convertible promissory note with DBI Lease Buyback Servicing LLC, an affiliate of Drawbridge Investments LLC. Now, the Mullen shareholder Esousa Holdings LLC acquired the Note from Drawbridge and entered into an agreement to extend the maturity date until 2024. The original Note was scheduled to mature on July 28, 2022, and the Note is now extended to July 2024.
“This note extension with Esousa is important for us, as it preserves our cash flow at a time when the economy appears to be hitting some headwinds, and it provides the Company with a strengthened cash position, allowing us to execute on our EV plans,” said David Michery, CEO and chairman of Mullen Automotive. Mullen’s share price closed 5.60% higher on Friday at $1.32 gaining nearly 16% during the last 5 days.
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According to a SEC form filed on Friday evening, Mullen Automotive CEO David Michery sold a total of 150,000 shares at an average price of $1.01017 on Wednesday, June 15. Since mid-March, Michery sold a total of 1.4 million shares. Following this sale, Mullen‘s CEO holds a total of 7.761.066 shares on the company.
Earlier this month, Michery was asked about the recent sales in an interview with Benzinga answering “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”.
Mullen Automotive is now working on the announcement deal with a Fortune 500 company for its Class 1 vehicles but is also in negotiations with “major OEMs” to use Mullen‘s battery technology, as recently confirmed by the CEO, David Michery.
While these negotiations do not have a specific date for conclusions, the announcement of the deal with the F500 company and its details will be revealed before the end of the second quarter, i.e. in the next two weeks.