Mullen Automotive (NASDAQ:MULN) stock is cratering after the company announced that shareholders preliminarily approved its proposal to conduct a reverse stock split in a ratio between 1-for-2 and 1-for-100. CEO David Michery stated that Mullen would soon file a Form 8-K with the final vote results.

Mullen had initially held its special meeting of stockholders on Dec. 15. During the meeting, the reverse split proposal did not receive enough votes to pass, and a proposal to adjourn the meeting to a later date went into effect. The meeting was adjourned to today for the sole purpose of soliciting more votes in favor of the reverse split proposal. Shareholders of record as of the close of business on Nov. 6 were able to cast votes toward the meeting.

Mullen has until Jan. 22, 2024 for its shares to close at or above $1 for 20 consecutive trading sessions. “In the event the Company continues to fail to meet the $1.00 minimum bid price threshold, it stands the risk of being delisted by Nasdaq,” said the electric vehicle company.

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