Mullen Automotive (NASDAQ: MULN) appears to be just as focused on the price of its stock as it is the development of electric vehicles. That focus has lead the company to announce that it intends to spend over 10% of its current cash position on stock buybacks.
Mullen has revealed it intends to spend up to $25 million on a buyback program, which will run through to the end of 2023. The decision to enact such a program, despite its stage of development, is a result of the company being of the belief that the stock is “significantly undervalued and is trading at a significant discount to [the] current cash position.”
READ: Mullen Automotive Declares It Won’t Conduct Another Financing In 2023 To Calm Investors
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The announcement comes a day after Mullen formally announced that it has retained Christian Attar, formally known as the Christian Levine Law Group, to “combat naked short selling activities.” Mullen believes that “it may have been the target of a market manipulation scheme involving illegal naked short selling.”
The decision caused the stock to rally 69% on the day yesterday, while the name is currently up 75% in pre-market trading today off the back of the buyback announcement.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
