What you need to know:
- UPDATE: Mullen Automotive has confirmed to Clean Trucking that David Michery is the new CEO of Bollinger Motors, replacing Bryan Chambers.
- Mullen Automotive has increased its stake in Bollinger Motors from a controlling interest to 95% ownership, providing a major financial lifeline to the struggling electric truck maker.
- Mullen’s acquisition eliminates Bollinger’s debt and is expected to increase shareholder equity by $3.5 million.
- Mullen settled a $10.5 million debt claim from founder Robert Bollinger, leading to the dismissal of a court-ordered receivership and allowing Bollinger Motors to resume normal operations.
- Although not officially confirmed, Mullen CEO David Michery may have replaced Bryan Chambers as CEO of Bollinger Motors, signaling a possible shift in leadership and strategy.
Financially struggling Bollinger Motors has received a desperately needed lifeline from Mullen Automotive.
Calif.-based Mullen, which purchased a controlling interest in Bollinger in September 2022 for $148 million, has now acquired an additional 21%, bringing its total ownership to 95% of the Mich. manufacturer of the battery-electric B4 medium-duty chassis cab.
[Related: Explore the Bollinger Motors B4 Chassis Cab like never before]
Mullen claims the move increases shareholder equity by an estimated $3.5 million and eliminates Bollinger's debt.
Mullen takes action
Last week, we reported that Mullen enacted a reverse stock split - a move designed to consolidate existing shares into fewer and more valuable shares - effective June 2, in order to comply with the Nasdaq's $1.00 minimum bid price requirement.
This isn't the first time in recent months Mullen has taken action regarding a bankrupt or financially struggling commercial EV truck maker.
Now-bankrupt Nikola Motors sold its battery line equipment to Mullen earlier this year in what might have been part of a last-ditch survival effort.
Today's announcement appears to be a continuation of the company's financial reorganization. Not only is Mullen providing financial security to Bollinger, it has resolved founder and former CEO Robert Bollinger's recent claim the company owes him $10.5 million following a personal loan he made last October.
Bollinger the company attempted repayment last month but Mr. Bollinger stated at the time the amount was "insufficient to cure" the loan's terms, resulting in a court-ordered receivership for the company, which also had its assets frozen.
[Related: Federal judge places Bollinger Motors in receivership, assets frozen]
Fast-forward to today's announcement and Mullen has confirmed it resolved Mr. Bollinger's claims and debt. Mullen states that "The court in that action has entered an order discharging and removing the receiver, as well as dismissing the case with prejudice, ensuring Bollinger's continued operations under Mullen's complete ownership and strategic direction."
What now?
Bollinger will operate as an independent majority subsidiary of Mullen and clarified existing B4 customers can expect business as usual for everything from warranty claims, sales, and service.
"This is an important moment for both Mullen Automotive and Bollinger Motors," said David Michery, CEO and chairman of Mullen Automotive and Bollinger Motors. "Our investment in acquiring the vast majority of remaining shares and resolving certain significant outstanding debt demonstrates our belief in and continued commitment to Bollinger's vehicle lineup and future."
What's not being said
UPDATE: In response to an query from Clean Trucking, Mullen Automotive has confirmed that David Michery is the new CEO of Bollinger Motors, replacing Bryan Chambers.
Based on Mullen's official statement, Mullen CEO David Machery has apparently assumed the same role at Bollinger. If confirmed, he will be taking over from Bryan Chambers, named CEO only this past March. Chambers has held several roles at Bollinger since joining almost seven years ago, including President and Chief Operating Officer.
Clean Trucking has reached out to Bollinger Motors, which has not issued a press release at the time of this writing, for clarification on the matter and we'll update this space if a response is received.
