Net Element, Inc. (NETE) recently signed a definitive reverse merger deal with Mullen Technologies Inc. The deal is likely to be closed in Q4 2020 but is subject to some terms. Those include satisfactorily completion of due diligence, approval from shareholders and NASDAQ. It is also subject to capital raise of $10 million.
The Southern California-based Mullen Technologies is a privately held company which focuses on electric vehicle manufacturing. The licensed EV company is involved in development of environmental friendly technology to bring affordable alternate energy solutions to consumer products. To get the better idea about the privately held company, let’s have a look at its last month presentation at JP Morgan’s Virtual Auto Conference.
Mullen bought Coda’s assets and acquired few other energy assets for complex battery technology. It also signed collaboration with Qiantu Motors. Mullen believe all these steps as time saving and cost effective. After joining hands with Qiantu Motors, Mullen intending selling it’s EVs in the United States. The Chinese EV maker is wholly owned by Beijing-based CH Auto and is already selling EVs in its home country.
Mullen partnered with Qiantu to sell its Dragonfly K50 in the US with plans of assembling it locally. It has preorders for the EV as it was introduced last year in the US. The capital hungry Mullen is currently in need of funds to establish an assembly plant. Mullen is expected starting delivering Dragonfly K50 in second quarter of 2021.
Mullen expresses its interest in building a 1.5 million sq-ft assembling facility with City of Spokane through a letter of intent. The company intends to manufacture and assemble vehicles there. Development of advanced battery solutions with multiple applications is also plan of the company for that facility. The project is going through designing phase and Mullen is likely to start building that facility in next two months. Mullen will require about $400 million over next five years to complete the facility, as believes the company.