Emerging electric vehicle producer Mullen Automotive (US:MULN) led the Nasdaq on Wednesday with shares skyrocketing more than 80% higher by 1 pm as management announced that it had acquired bankruptcy assets from Electric Last Mile Solutions Inc (US:ELMSQ).

Traders took profits after lunch with shares pulling back and closing 57.1% higher. In post-market trading, buying activity continued with shares moving a further 3.8% higher.

The transaction was approved by the US Bankruptcy Court concerning Chapter 7 for a purchase worth approximately $97 million. Mullen is reportedly paying $55 million in cash with the rest being used to settle contractual liabilities.

The acquisition includes an ELMS production facility in Mishawaka, Indiana including all inventory and any associated IP.

The manufacturing facility was previously used to produce General Motors Hummer H2 SUV & SUT and was also used to manufacture the Mercedes-Benz R-Class vehicles, which is why management believes it is a strategic fit for the business.

The facility has the capacity to produce 50,000 vehicles each year and will allow the company to bring forward production of the Mullen FIVE and Bollinger B1, B2 retail vehicles by 12+ months.

Mullen noted that current cash reserves and a funding commitment of up to $240 million gives the company access to up to $275 million to complete the deal and fund the vehicles into production.

The company also highlighted that the platform and plant acquisition will result in a significant reduction of the company’s previously forecasted overall spend.

Mullen’s CEO and Chairman David Michery commented on the transaction stating “Mullen’s acquisition of Bollinger was one of the largest transactions of its kind in the EV market. 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”

To optimize the manufacturing process, Mullen will move the FIVE EV crossover production to the Mishawaka Factory from the Tunica, Mississippi facility.

This acquisition follows the purchase of a controlling interest in EV truck company, Bollinger Motors last month for $148.2 million. The company paid for the transaction with a split of cash and stock.

Management has been busy working on deals and even appointed a new CFO to the role named Jonathan New, replacing Kerri Sadler who moved into a new Chief Accounting Officer role.

Despite the consistent news flow over the past month and exciting news that will speed up the production timeline, MULN’s stock has lost -64% value since the beginning of September and is trading -94% lower year to date.

Fintel’s institutional ownership score of 90.12 is quite bullish on MULN as it ranks the company in the top ~1% of 31,914 screened companies that are experiencing the highest level of growing institutional interest.

Mullen currently has 149 institutions on the register that own a total of 34.5 million shares.

This article originally appeared on Fintel

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.