Shares for Mullen Automotive Inc. (Nasdaq: MULN) surged 84% to 40 cents a share and a $228 million market cap after the Brea EV upstart today said it will acquire manufacturing, inventory and intellectual property assets from commercial EV maker Electric Last Mile Solutions Inc. (ELMS) (OTC: ELMSQ), which filed for bankruptcy earlier this year.
The company today reported in regulatory filings that the U.S. Bankruptcy Court approved Mullen’s approximately $55 million purchase of ELMS’ assets. As part of the deal, Mullen will also assume ELMS’ contracts and liabilities, which are worth about $37 million, filings indicate.
The acquisition, which includes ELMS’ factory in Mishawaka, Ind., enables Mullen to produce up to 50,000 vehicles annually and expand its commercial portfolio by over 50%, company officials said. The deal also shaves over a year off of Mullen’s production timeline for the Mullen Five SUV and Bollinger B1 and B2 trucks, according to company officials.
“Upon closing the ELMS transaction, the Company will be in a position to strategically leverage all its acquired assets to shorten its production path and aggressively expand into the commercial and consumer EV market,” Mullen CEO David Michery said in a statement.
The ELMS deal marks Mullen’s second acquisition this year. The company in September said it acquired a 60% stake in EV manufacturer Bollinger Motors for $148.2 million in cash and stock.