The Rights Agreement is intended to promote the fair and equal treatment of all stockholders and is similar to rights plans adopted by other publicly held companies
The Rights Agreement is not a financing transaction and no additional shares of Common Stock or Preferred Stock or warrants or convertible notes are currently being issued in connection with the Rights Agreement
Mullen Automotive Inc. (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer, announces that its Board of Directors (the “Board”) has unanimously adopted a limited duration stockholder rights plan (the “Rights Plan”).
The Rights Plan is intended to promote the fair and equal treatment of all stockholders and is similar to rights plans adopted by other publicly held companies. The Rights Plan is designed to enable all Company stockholders to realize the long-term value of their investment and is intended to protect Mullen and its stockholders from efforts by a single stockholder or group to obtain control of the Company without paying a control premium.
The Rights Agreement is not a financing transaction and no additional shares of Common Stock or Preferred Stock or warrants or convertible notes are currently being issued in connection with the dividend distribution of the Rights. In general terms, the Rights Agreement works by imposing a significant penalty upon any person or group that acquires beneficial ownership of 10% or more of the shares of Common Stock without the prior approval of the Board.
The Rights Plan is effective immediately and will expire on May 1, 2025. Additional information regarding the Rights Plan is contained in the Form 8-K filed by Mullen with the U.S. Securities and Exchange Commission (the “SEC”), which is expected to be available at approximately 10 a.m. Eastern on Monday, May 6, 2024.
