Bloomberg News reports that EV startup Mullen Automotive Inc., which is now in troubled waters is emerging as the biggest bidder for the assets of Electric Last Mile Solutions Inc, which is its bankrupt competitor. This also includes a Hummer SUV factory in Indiana which is now idle.
A stalking horse bid of approximately $100 million was agreed upon by Mullen in total consideration, as per a filing on September 16th by the trustee in the Chapter 7 case of Electric Last Mile. The competing bids will be due by October 3rd, and an auction as well is slated to be held on October 7th.
The details of the offer were obtained after Mullen announced that it was planning to acquire a major stake in Bollinger Motors, which is a rival company in a cash-and-stock transaction. Mullen has the aim to bring to the market electric vehicles which also include a compact SUV and a sports car. Mullen was not available for any comments on the issue.
These firms are among quite a few of the electric vehicle startups that have been struggling to stay afloat in a market that is primarily dominated by Tesla Inc, especially during a period when the costs are high and supply chains are overstretched. Just a day after the Bollinger deal was announced, Mullen revealed that it fell out of compliance with the minimum share price requirement of Nasdaq. It may be noted that the stock of Mullen declined by about 90% in the current year.
Bloomberg News further states that the trustee has revealed that there are as many as 245 potential strategic and that the financial parties were solicited for the Electric Last Mile assets, which in June was found to file for bankruptcy. Also, there are 39 of them that have been executing an NDA or non-disclosure agreement for performing due diligence and make a bid potentially.
