Mullen Automotive (NASDAQ:MULN) stock is in full focus after the company announced that British Airways (BA) began piloting Mullen’s campus electric vehicle (EV) cargo van at the Los Angeles International Airport (LAX) back in April. After the pilot program was completed, LAX and Chicago O’Hare International Airport (ORD) agreed to purchase an unspecified number of campus vans “in support of BA airport ground operations.”
The LAX and ORD transactions closed after Mullen received payment from British Airways on Aug. 31. The payment amount was not specified. Mullen also disclosed that it had entered into another campus van pilot program at George Bush International Airport (IAH) on July 12. IAH is currently deciding on whether to purchase the vans or not.
MULN Stock: Mullen Receives Payment from British Airways
Back in February, Mullen announced a 60-day Class 1 EV cargo van pilot program in collaboration with Menzies Aviation and Loop Global at LAX. The program wrapped up in April, with the vans being driven over 1,500 miles and demonstrating an estimated 83% reduction in carbon dioxide emissions compared to a gas-vehicle equivalent. Menzies also requested modifications following the completion of the program, such as increased seating capacity and additional window space. Mullen wrote that it expected Menzies to place an order following the modifications. Still, it has been several months without official word on Menzies’ anticipated order.
Meanwhile, shareholders are hoping that the BA news will give MULN stock a much needed lift. On Sept. 6, Nasdaq’s Listing Qualifications Department provided Mullen with a delisting determination. This was due to MULN failing to close at or above $1 for at least 10 consecutive business days, but generally no more than 20 consecutive business days, by Sept. 5. Yesterday, Mullen confirmed that it had requested a hearing in front of the Listing Qualifications Panel in order to appeal the determination.
MULN stock should remain listed on the Nasdaq while the panel makes its decision. Mullen added that the panel has the power to grant it another 180-day extension to regain compliance. The panel could also choose to suspend or delist MULN or “apply additional or more stringent criteria for the continued listing of the Company’s common stock.”
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
