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Mullen Continues to Acquire ELMS Assets Including Factory in Mishawaka, IN., EV Manufacturing for Retail and Commercial Vehicle Lines

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Mullen Automotive, Inc.

BREA, CA , 19 Oct 2022 (GLOBE NEWSWIRE) — via NewMediaWire – Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or “Company”), an emerging electric vehicle (“EV”) manufacturer, was determined by the U.S. Bankruptcy Court on October 13, 2022 to acquire the assets of the electric vehicle company ELMS (Electric Last Mile Solutions). Announced approval for an all-cash purchase. In the Chapter 7-approved transaction, Mullen will acquire ELMS’s manufacturing facility, all of its inventory and intellectual property.

Acquisition benefits include:

  • The factory in Mishawaka, IN, provides Mullen with the capacity to manufacture up to 50,000 vehicles per year.

  • Accelerates the road to production and market for up to 12-plus months for Mullen FIVE and Bollinger B1, B2 retail vehicles

  • Commercial Product Platforms to be mounted on Mullen’s Tunica MS. Facility to Launch Mullen Class 1 and Class 3 Commercial Delivery vehicles in 2023.

  • The platform and facility acquisition provides a significant reduction in the Company’s estimated total spend.

The Mishawaka, IN plant, which was part of the company’s acquisition, previously produced the General Motors Hummer H2 SUV and SUT, and later produced the Mercedes-Benz R-Class vehicle under contract. This makes it an excellent choice for the production of the Mullen and Bollinger portfolio of consumer vehicles. The ELMS asset acquisition and recent majority ownership of Bollinger Motors gives Mullen the ability to integrate Bollinger’s B1 and B2 vehicle platforms along with Mullen’s FIVE and FIVE RS platforms into its already existing and capable high-volume production facility. As a result, this will accelerate the launch of Bollinger B1, B2 retail vehicles by 12-plus months.

Production optimization will include moving the Mullen FIVE EV Crossover production from the Tunica, MS facility to the Mishawaka Factory. Production of Mullen FIVE is scheduled to begin production in 2024. Tunica will now be the Commercial Production Center and will have the capital to produce all of Mullen and Bollinger Classes 1 to 6.

Total production volumes with Additional Production capacity are expected to exceed Mullen’s previous business plan projections. The commercial portfolio is expected to increase by over 50% with the addition of ELMS assets, and the retail portfolio is expected to more than double with the addition of Bollinger tools and Mishawaka’s manufacturing capacity.

The company’s acquisition of a majority stake in Bollinger Motors was closed in August 2022 with a combination of stock and cash. The ELMS purchase will be completed as an all-cash purchase.

Acquisition Highlights:

According to the Asset Purchase Agreement, which can be viewed in the company’s recent public filings, the ELMS Assets purchased by Mullen are as follows:

  • All Intellectual Property, including but not limited to registered intellectual property specifically listed in the Asset Purchase Agreement

  • All inventory, including but not limited to vehicles, finished and unfinished products, finished products, component modules component parts, raw materials, tools specific to the product, all production data necessary or reasonably helpful for the assembly of Class 1 Electric commercial delivery vans and Class 3 Commercial Delivery Cab Chassis

  • Purchase of real estate located in Mishawaka, Indiana with all buildings, improvements and fixtures

  • All tangible personal property, including equipment, machinery, furniture, supplies, computer hardware, data networks, servers (with data and software), communications equipment, software, disks, and all other data storage media

“Mullen’s acquisition of Bollinger was one of the largest transactions of its kind in the electric vehicle market. “Once the ELMS transaction is closed, the Company will be in a position to strategically leverage all of its acquired assets to shorten the production path and expand aggressively into the commercial and consumer EV market,” said David Michery, Mullen Automotive CEO and president.

About Mullen

Mullen is a Southern California-based automotive company that owns and partners with several synergetic businesses working towards the combined goal of creating clean and scalable energy solutions. Mullen has evolved over the past decade in line with consumers and technology trends. Today, the Company is diligently working to offer an exciting selection of EVs built entirely in the United States and made to fit perfectly into the life of the American consumer. Mullen strives to make EVs more accessible than ever before by creating an end-to-end ecosystem that takes care of all aspects of EV ownership.

forward-looking statements

Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. All statements in this press release that are not statements of historical facts can be considered forward-looking statements. “continue”, “will”, “could”, “could”, “could”, “can wait”, “can expect”, “plans”, “intend”, “guess”, “believe”, “guess” , ” “guess,” “potential,” and similar expressions are intended to describe such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements; many of these are often beyond Mullen’s control and difficult to predict. Examples of such risks and uncertainties include, but are not limited to, whether the ELMS purchase will be closed and, if so, whether it will be beneficial to the Company; Whether the projected production capacity to produce 50,000 vehicles per year will be reliable; whether Mullen’s cash availability will be sufficient to close and finance vehicle launches; whether the acquisition of the platform and facility will result in the anticipated reduction in the Company’s anticipated expenditure; Whether using the manufacturing facility in Mishawaka, IN, will result in accelerating the development of Bollinger B1, B2 retail vehicles by 12-plus months or nothing; Whether the projected production optimization and estimated total Mullen and Bollinger vehicle production volumes detailed in this Press Release will occur; Whether production of Mullen FIVE will begin in 2024; Whether the entire ELMS purchase will be completed as a cash purchase; Whether the Company’s on-hand cash and other financing commitments will generate sufficient revenue to succeed in completing the acquisition and/or financing of vehicle launches; and whether the Company will be successful in its efforts to use all of its acquired assets to shorten the production path and expand into the commercial and consumer EV markets. Additional examples of such risks and uncertainties include, but are not limited to: (i) Mullen’s ability (or inability) to obtain additional financing in sufficient amounts or at acceptable terms as needed; (ii) Mullen’s ability to maintain existing contracts and secure additional contracts with manufacturers, parts and other service providers related to its own business; (iii) Mullen’s ability to successfully expand and enter new markets in existing markets; (iv) Mullen’s ability to successfully manage and integrate any business, solution or technology acquisition; (v) unexpected operating costs, transaction costs and actual or contingent liabilities; (vi) ability to attract and retain skilled workers and key personnel; (vii) adverse effects of increased competition on Mullen’s business; (viii) governmental licensing and regulatory changes that could adversely affect Mullen’s business; (ix) the risk that changes in consumer behavior could adversely affect Mullen’s business; (x) Mullen’s ability to protect its intellectual property; and (xi) local, industrial and general business and economic conditions. Additional factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-. K was filed by Mullen with the Securities and Exchange Commission. Mullen speculates that subsequent events and developments may cause his plans, intentions, and expectations to change. Mullen assumes no obligation and specifically disclaims any intent or liability to update any forward-looking statements for new information, future events or otherwise, except as expressly required by law. Forward-looking statements are valid only as of the date they are made and should not be relied upon as representing Mullen’s plans and expectations at any future date.

Communication:
Mullen Automotive, Inc.
+1 (714) 613-1900
www.MullenUSA.com

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