- Mullen expects to operate business over the next 12 months upon receipt of the funding
- MULN stock rose more than 5% on Monday
- Mullen is set to receive $110 million in funding this year.
Mullen recently filed a Form 8-K disclosing changes to a securities purchase agreement (SPA) dated June 7, 2022. Under the changes, Mullen will issue preferred stock and warrants to several entities in exchange for $90 million. Mullen also entered into promissory notes worth $20 million with an interest rate of 15%, due on April 17. The funding aligns with Mullen’s earlier announcement, and the company believes it has enough cash to support its business plan for the next 12 months.
What does this mean for investors ?
Form 8-K by Mullen indicates that there have been changes to a securities purchase agreement (SPA) that was previously dated June 7, 2022. As part of these changes, Mullen will be issuing preferred stock and warrants to multiple entities in exchange for $90 million. This suggests that Mullen is securing additional funding through the issuance of these securities.
Additionally, Mullen has also entered into promissory notes worth $20 million, which carry an interest rate of 15% and are due on April 17. This implies that Mullen has taken on additional debt in the form of promissory notes to further bolster its funding.
Note : This is for informational purposes only and is not financial advice