Summary by Futu AI
On May 31, 2024, Mullen Automotive Inc. announced the settlement and cancellation of its Series C Preferred Stock with a redemption value of approximately $14.9 million. This was achieved through the issuance of $3.0 million of Series E Preferred Stock to Ault Lending, LLC, which held the Series C Preferred Stock. The transaction did not constitute new financing. The Series E Preferred Stock, with rights and preferences detailed in the company's Form 8-K, is convertible into common stock and may be exchanged for Notes and Warrants under certain conditions. Additionally, Mullen Automotive resolved overdue liabilities with different vendors by entering into an agreement with Silverback Capital Corporation, which resulted in the issuance of common stock to settle an aggregate of $4,623,655. The company also filed a certificate of designation for the Series E Preferred Stock, outlining the rights and preferences of the holders. These corporate actions were exempt from registration under the Securities Act and were detailed in the company's filings with the SEC.