Mullen Automotive Expands Control with 95% Ownership of Bollinger

Mullen Automotive Expands Control with 95% Ownership of Bollinger

Transaction increases shareholder equity by approximately $3.5M

As part of agreement, Mullen extinguishes significant debt, gains an additional 21% ownership, and regains full control of Bollinger Motors

Bollinger to continue operating as a majority-owned Mullen subsidiary; Mullen will continue to provide full financial backing on sales, service, and warranty of vehicles

Bollinger to ramp up sales activity immediately while consolidating and streamlining operations

Mullen Automotive Inc. (NASDAQ: MULN), an innovative electric vehicle (EV) manufacturer, recently announced a pivotal strategic move by acquiring an additional 21% stake in Bollinger Motors, elevating its total ownership to a commanding 95%. This acquisition significantly boosts shareholder equity by approximately $3.5 million, marking a critical step in Mullen's vision for its electric vehicle initiatives.

With the closure of this transaction, Mullen has successfully tackled recent claims and outstanding debt issues that previously led Bollinger Motors into a court-ordered receivership. The favorable resolution included the court discharging the receiver and dismissing the case, paving the way for Bollinger's full operations under Mullen's strategic guidance.

Bollinger will retain its independence as a majority subsidiary while upholding its unique brand identity and commitment to customer satisfaction. Current customers can expect seamless operations, with comprehensive support for the sales, service, and warranty of their vehicles.

David Michery, the CEO and chairman of both Mullen Automotive and Bollinger Motors, reflected on this momentous occasion saying, "This acquisition cements our belief in Bollinger's capabilities and future prospects. Our efforts to acquire a significant share and resolve lingering debts showcase our commitment to advancing Bollinger’s innovative vehicle lineup."

Bollinger Motors continues to focus on its flagship product, the Bollinger B4 Chassis Cab, an all-electric Class 4 commercial truck. Designed with input from fleet and upfitter stakeholders, this vehicle boasts a robust Quad-Bend chassis that houses a resilient 158-kWh battery. The B4 offers impressive specifications including a 185-mile range, a 46-foot turning radius, and a payload capacity of 7,325 pounds, making it ideal for diverse urban operations.

As Bollinger embarks on this new phase under Mullen’s umbrella, the company plans to enhance its production capabilities and ramp up sales activities without compromising operational efficiency. The synergy created by integrating Bollinger’s initiatives with Mullen's expansive resources is expected to open new avenues for innovation and market penetration.

About Bollinger Motors

Bollinger Motors, founded in 2015 and headquartered in Oak Park, Michigan, is dedicated to producing all-electric commercial Class 4 chassis cab trucks. Since becoming a majority-owned subsidiary of Mullen Automotive in September 2022, Bollinger has set ambitious goals, including launching the production of its Class 4 electric truck, which is a critical milestone in the growing market for electric commercial vehicles.

About Mullen Automotive

Mullen Automotive Inc. is based in Southern California and is at the forefront of producing the next generation of commercial EVs. With two state-of-the-art manufacturing facilities in Tunica, Mississippi, and Mishawaka, Indiana, Mullen has made significant strides in EV production. As of early 2024, Mullen has commenced its commercial vehicle production operations, delivering environmentally-friendly alternatives through products like the Mullen ONE and Mullen THREE, which have received the necessary regulatory certifications and are available for the U.S. market.

With a growing dealer network spread across key regions like the West Coast and Midwest, Mullen is committed to building a sustainable future by providing not just vehicles, but complete transport solutions tailored to customer needs.

Frequently Asked Questions

What recent acquisition did Mullen Automotive announce?

Mullen Automotive announced it has acquired an additional 21% of Bollinger Motors, bringing its total ownership to 95%.

How does this acquisition impact Mullen's shareholder equity?

The acquisition is expected to increase shareholder equity by approximately $3.5 million.

What are the operational changes for Bollinger Motors after the acquisition?

Bollinger will continue to operate as an independent majority subsidiary with full backing from Mullen, focusing on sales and customer service.

What is the Bollinger B4, and why is it significant?

The Bollinger B4 is an all-electric Class 4 commercial truck designed to offer extensive functionality and efficiency in urban settings.

What future plans does Mullen have for Bollinger Motors?

Mullen aims to leverage its resources to accelerate both Bollinger’s operational capabilities and market expansion.

About The Author

Olivia Taylor here, a 26-year-old writer and financial advisor. After earning a degree in finance, I worked in the sector for years. I've always loved numbers and had a talent for simplifying difficult financial ideas so that anyone could understand. I wrote my first book because of this passion; it helps readers take charge of their financial futures by fusing real-life stories with useful financial advice.

Whether they are just beginning their careers, preparing for significant life events, or seeking to invest wisely, my goal with my writing is to enable people to make educated financial decisions. The foundation of my work is the conviction that security and freedom of the individual are largely determined by financial literacy. To further financial education, I run workshops and frequently write for financial blogs in addition to my books.

I like to travel, experience other cultures, and find inspiration in daily life when I'm not writing or examining market trends. My passion is utilizing sound financial practices to help people reach their financial objectives and lead the best lives possible.

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