Mullen Automotive, Inc., an emerging electric vehicle manufacturer, closed on the acquisition Nov. 30 of Electric Last Mile Solutions' (ELMS) assets in an all-cash purchase valued at $105 million.
The ELMS asset acquisition of all intellectual property and inventory will allow Mullen to launch into the commercial market much earlier than previously planned. Once the acquisition is final, it is anticipated that Mullen will be delivering Class 1 products in Q1 2023, followed by its Class 3 vehicles in Q2.
The ELMS Mishawaka, Indiana, factory, which previously produced General Motors’ Hummer H2 and the Mercedes-Benz R-Class vehicle, is a perfect fit for the production of the Mullen FIVE SUV and the Bollinger B1 and B2 platforms. Taking possession of this plant in its current condition will allow both vehicles to be launched with significantly less capital than previously anticipated and bring forward their respective launch dates. Commercial van production, including Class 1 EV cargo vans, will be in Tunica, Mississippi.
“I have been working on this plan for many years, putting in place the strategic and critical enablers to be a dominant competitor in the EV market,” said David Michery, CEO and chairman of Mullen, in a news release. “Successfully completing this asset acquisition moves Mullen into an all-new position with IP, plants, and product platforms that no other competitor can offer to both retail and commercial customers. We have everything we need to launch the Mullen and Bollinger EVs product lineup.”
The acquisition closes out a troubled start-up phase for ELMS, which filed for bankruptcy on June 14 following the Feb. 1 resignations of CEO and co-founder James Taylor and Executive Chairman of the Board Jason Luo as an internal probe determined they were among executives who purchased equity in the company at substantial discounts to market value without obtaining an independent valuation.
In addition, on Jan. 26, on the basis of the special committee investigation, the board concluded that the ELMS' previously issued consolidated financial statements should be restated and, therefore, should no longer be relied upon. The financial statements in question cover the period as of Dec. 31, 2020, the period from Aug. 20, 2020 (inception) through Dec. 31, 2020, the six months ended June 30, and the nine months ended Sept. 30, 2021.
Originally posted on Charged Fleet