Mullen Automotive Stock Forecast: MULN jumps more than 16% following Romeo deal
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- Mullen announced the decision to acquire battery equipment and IP from Romeo Power.
- MULN stock gained more than 5% on Monday.
- CEO David Michery is in the middle of an appeal to remain listed on the NASDAQ exchange.
- MULN stock could be delisted as soon as September 15.
Mullen Automotive (MULN) stock jumped more than 16% at the open on Tuesday to above $0.51. MULN has finally begun to develop an uptrend following the $3.5 million purchase of battery manufacturing equipment from Romeo Power, which was announced on Monday.
A statement from the company says the deal gives Mullen “equipment, inventory, and intellectual property for high-volume EV (electric vehicle) battery pack and module production.”
Mullen stock news: Romeo Power deal could lead to better production momentum
The agreement gives Mullen access to equipment that will help it increase battery pack assembly lines, as well as increase its battery research & development capabilities.
“Purchasing the Romeo assets is consistent with our battery pack production path and previous announcements for our high voltage facility in Monrovia. Overall, this purchase further enhances our capabilities for battery pack production right here in California and the US,” said David Michery, founder, chairman and CEO of Mullen.
The EV company will integrate the new equipment with its ongoing facility in Monrovia, California. The company already builds battery packs and modules in Monrovia but says the new equipment will allow it to become less reliant on third-party supply chains.
The company has recently been reeling from NASDAQ’s announcement that it has chosen to delist MULN common stock from its exchange due to the well-telegraphed criterion that listed companies need to keep their share price above $1.00.
Mullen leadership knew since May of this year that it needed to maintain the $1.00 threshold for the 10 sessions leading up to the September 5 cutoff date last week. Instead, the share price dropped precipitously from the $1.00 price level down to below $0.50 during that time period.
Mullen has appealed for an extension from the NASDAQ committee that governs delistings, which could give it as much as 180 days to comply with the listing criteria. However, if the appeal fails, then MULN stock might end up trading on the pink sheets on or after September 15.
Mullen stock forecast
MULN stock added 5.8% on Monday and is advancing 2.3% in Tuesday’s premarket. This is a rather good sign as the NASDAQ 100 futures are down 0.3%, so this has nothing to do with the overall market sentiment.
Mullen stock could be in the early innings of a resurrection in share price. Thus far, it has managed to remain above the August 23 low at $0.39. The 9-day Simple Moving Average and the 21-day SMA need to be conquered at $0.48 and $0.65, respectively. From there, an overthrow of the $0.90 support level from June will bring bulls back into the trade.
MULN daily chart
