Mullen to bid for last-mile electrical solutions in bankruptcy • TechCrunch

Mullen Automotive is the lead bidder on bankrupt commercial electric vehicle maker Electric Last Mile Solutions, its second major deal this month as it strives to deliver its own electric vehicle.

The California-based automaker launched a nearly $92 million bid to buy ELMS, which had been developing a commercial electric vehicle called Urban Delivery before it ran out of money amid an SEC investigation into charges insider trading.

Mullen will pay $55 million for the company’s assets, including inventory, intellectual property rights and its plant in Mishawaka, Indiana, and assume $37 million in liabilities, according to an SEC filing. Mullen paid a down payment of $5.5 million to be applied towards the purchase.

Michigan-based Electric Last Mile Solutions filed for bankruptcy in June, less than a year after going public in a $1.4 billion SPAC deal. Meanwhile, Mullen, which has yet to launch a vehicle since its 2021 SPAC merger, faces its own issues: NASDAQ warned earlier this month that the company could be delisted because the stock price of its stock has traded below $1 for 30 straight days.

Mullen disclosed the NASDAQ notice a day after announcing it had acquired a 60% majority stake in Bollinger Motors, a Michigan-based startup that aimed to build battery-electric commercial trucks and off-road pickup trucks.

According to David Michery, CEO and President of Mullen Automotive, the $148.2 million cash and stock deal allowed Mullen to expand into the “high-demand electric vehicle business space.”

To regain NASDAQ compliance, Mullen shares must trade above $1 per share for 10 consecutive business days by March 6, 2023.

The automaker did not respond to a request for comment on Tuesday.

The growing list of struggling electric vehicle makers underscores the difficulty of building and launching a car without the resources of a legacy automaker. Several startups that have gone public in high-profile reverse mergers over the past two years have faced bankruptcy, SEC scrutiny, or cash flow issues.

Mullen plans to build its first electric crossover, the Mullen Five, in 2024 in Tunica, Mississippi. The company provided a preview last week of the Five RS, an “ultra-high performance EV sports crossover” with 1,000 horsepower, a top speed of 200 mph and 0-60 acceleration in under two seconds.

“The FIVE RS is destined to be one of the fastest vehicles on the planet, competing against some of the best and most well-known and reputable motoring marquees,” Michery said in a statement.


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