There has been a whole bunch of SEC
filings over the past week from Mullen
Automotive since my last video so in
today's video I'm gonna look back at the
very latest of these switches in regards
to the upcoming shareholders meeting
now we knew that the shareholders
meeting was coming but things are a
little bit different than expected so in
this video I will analyze exactly what
we can expect over the next few weeks
there seems to be a lot of
misinformation out there right now but
Mullen Automotive but this is the only
channel that has been correct about
absolutely everything that Mullen would
do this year going back as Fair as March
this year everything that I said would
happen has happened and I have pointed
out massive red flags to watch out for
along the way but if you find any value
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and hit the Bell notification now let's
get into it with the very latest SEC
filing from Mullen.
Mullen Automotive filed a form 14a
giving notice of a special meeting of
stockholders which will be held on
December 23rd at 9 30 a.m Pacific
Standard Time the special meeting will
be held virtually via live audiocast
now the day that this meeting is set for
is of huge significance
December 23rd is the Friday before
Christmas this is the last Possible
Trading day of the year and markets
close early choosing this day and
holding the meeting virtually straight
away is a big red flag now any
shareholders can attend this meeting
via the link that is shown here but no
matter how many shares you own off the
stock shareholders have little to no say
anyways which I will discuss in a moment
but let's continue
so if you don't already know there's a
few issues to be discussed at this
meeting proposal 1 and 2 are the most
important proposals one is the proposal
to execute a reverse stock split
of the outstanding shares of common
stock in an amount not less than one for
two shares and not to exceed one for 25
shares
with the exact ratio to be set within
the range at the discretion of the board
of directors now for anyone who doesn't
know why a company would want to do a
reverse split in the first place
this is due to the fact that NASDAQ
listing rules mean that a company stock
must stay above one dollar at all times
if the stock Falls below one dollar for
a long period of time then the company
can get delisted off NASDAQ As We Know
Mullen Automotive stock has been trading
well below one dollar for several months
and they did receive notice in September
that they have until March 2023 to get
the stock back above one dollar
now the stock is currently trading at 20
cents which is very close to muln stock
all-time low but it is highly likely to
drop much further than this (MULN STOCK)
as it says in this filing the reverse
stock split could be as little as one
for two but this would be pointless
because this would not bring the share
price up back above one dollar
and I feel that it is highly likely that
they will in fact split by the maximum
of 1 for 25. this will look best for the
company
and at the end of the day because the
share structure won't look as bad as
having billions of shares
if the maximum one for 25 ratio is
selected common stock issued
understanding as of record date will go
from
1.659 billion down to 66.3 million
shares (of muln stock)
which looks Fair better in the share
structure point of view
but proposal number two
is to increase the number of shares of
common stock authorized from 1.75
billion up to 5 billion shares while
proposal number four is to approve extra
dilution in the form of note and
preferred stock which would then be
converted into even more common stock
now when we scroll down a little bit we
can see that only holders of record at
the close of business on November 21st
are entitled to vote at the special
meeting but as I said a moment ago this
makes very little difference to ordinary
shareholders as we can see here there is
1.65 billion shares of common stock and
one double a preferred stock that was
awarded to CEO David mitchery last month
giving him 1.3 billion votes on the
reverse stock split proposal now this
double a preferred stock should have
given shareholders the biggest wake-up
call to days regarding the company's
intentions because David metri was
awarded this stock in exchange for
twenty five thousand dollars which
allows him to essentially control the
entire vote
and once the shareholders meeting is
over the double a stock will be
dissolved and CEO David mitchery Gets
refunded his 25 000 which is just
incredible
now something that I said about this
stock when I first started to cover it
back in March was that this seemed like
nothing more than a dilution vehicle
that would just drain investors money by
constantly issuing new shares and having
very little to show for it we can see
here that they currently have 1.65
billion shares of common stock at the
time of my first $MULN video there was
28 million shares outstanding this is
the level of dilution that I have never
seen before
and not only that they have diluted by
more than 300 million shares in the past
10 days Alone look here at the Forum
pre-14a filed on November 15th 1.3
billion shares
and we can see that here highlighted in
green
on the 15th of November
and now the form def14a there is 1.659
billion filed on the 25th of November
only 10 days later
all this company has done all year long
is dilute dilute dilute and anytime that
the CEO was asked about why the share
price is dropping he has responded by
saying that he does not know or does not
understand how it could be dropping now
let's remember that Mullen Automotive
only went public to a reverse merger
with net elements on November 9 2021
just over one year ago
November 9th but within 10 days this CEO
had already began dumping his stock here
on November 18th he dumped 750 000
shares which doesn't seem like many
shares now but at the time this was
750,000 shares that he sold
right here at the very very top at
approximately 16 per share
and since then the share price has been
dropping if this man truly believed in
this company why would he be selling
that amount of shares
within days of bringing the company
public it doesn't make any sense
now despite all the delusion up to 1.6
billion shares and the fact that he has
been granted Millions upon millions of
shares throughout 2022 David mitchery
now owns 56 million shares which
accounts to only 3.4 percent of the
total shares of the company and this is
where the double a preferred stock comes
into play in a normal shareholder
meeting anyone with 3.4 percent of total
shares would have very little influence
on his own but David metry has voting
power of 1.35 billion shares now which
means that no matter what happens at
this meeting no matter what way every
other shareholder votes whatever this
man wants to happen will happen but what
does all of this mean and what do the
other SEC filings regarding Michael wax
and Terran paiser's Investments really
mean
after all these guys are dumping more
shares than any retail shareholders
could dream of guys if you watched this
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so what is going to happen next well
when the shareholders meeting comes
around on December 23rd by this time or
closer this time we will also have the
2022 annual learning support the 10q
software this year have been filed on
the 14th of February the 16th of May and
the 12th of August
whereas last year's 10K was filed on
December 29th so I expected this year's
10K
will be filed within days of the
shareholders meeting and I expect this
to be an auto joke
I expect that the balance sheet will be
shocking and I'm basing this expectation
on the last earnings report which showed
that they had total assets of 84 million
and total stockholder Equity of 19
million
but the net loss for the year so far had
been 128 million dollars
since this earnings report more than
have added the assets of Elms and have
also acquired 60 of Bollinger motors for
148 million dollars
now one of the other SEC filings over
the past week was Mullen filing
Bollinger Motors financial statements
which shows us that Mullen paid 148
million dollars to acquire 60 percent
of a company worth
643 thousand dollars
that makes a loss of over thirteen and a
half million dollars now this will show
up in mullen's latest financial
statements as a massive Goodwill figure
of about 140 million dollars while
adding next to nothing to the actual
assets of the company
so guys if you would like to see another
update video where I look a bit closer
at this Bollinger Motors acquisition the
financial statements and what value has
actually been added to Modern Automotive
then drop a comment below and like this
video
or like I said a moment ago more than
investors
such as Michael wax and turn Pfizer are
now looking to dump their shares but
what do we actually know about these
guys
check out this video I met last month
where I looked at other major red flags
and turnpike's history or drop a comment
if you would like to see a new video
looking at more detail
about Michael walk's real history and
his real intentions from Mullen
Automotive as always the information
contained in this video is either from
mullen's own SEC filings or my opinion
and I am not a financial advisor so this
is not Financial advice
if you are considering investing in this
company
then I highly recommend Consulting an
actual financial advisor
anyways guys hit the thumbs up and if
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I'll catch you in the next update video