Summary by Moomoo AI
On December 6, 2024, Mullen Automotive received court approval to settle $20,623,013 in outstanding liabilities from existing convertible notes through the issuance of common stock or prefunded warrants. The settlement, effective upon court order, resolves all claims related to the notes issued on May 14, 2024.The settlement shares will be priced at the lower of $549.00, 95% of the closing price on the initial registration statement's effective date, or 95% of the lowest 5-day VWAP prior to conversion, with a minimum price of $1.16 per share. Issuance is subject to a 9.9% beneficial ownership limitation for each creditor.This arrangement, executed under Section 3(a)(10) of the Securities Act, allows Mullen to settle its debt without new financing. The company will issue unregistered equity securities, exempt from registration requirements, in exchange for the outstanding claims as approved by the court.
