Mullen Automotive to issue $50 million three-month promissory note at discount

By Wendy Van Sickle

Columbus, Ohio, Dec. 22 – Mullen Automotive, Inc. agreed on Dec. 18 to issue a non-convertible secured promissory note with a principal amount of $50 million for a total purchase price of $32 million to an undisclosed purchaser, according to an 8-K filing with the Securities and Exchange Commission.

The note will bear interest of 10%, which will jump to 18% immediately after the occurrence of an event of default, and a maturity date three months after issuance.

The issuance will occur on the later of Jan. 1 or the first day on which the Nasdaq Stock Market is open for trading on which all conditions to closing of both parties under the debt agreement have been satisfied.

Mullen in an electric vehicle manufacturer with headquarters in Brea, Calif.

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