Mullen Automotive Inc (MULN)

[QTRADERQ]

It's not as straight forward as that. The lenders who hold shares after the Offering may use them to short the stock. Then create panic. Drive the price much lower, then cover (perhaps at $1.40). That's when news will come out (good or bad) and the stock will begin it's next leg up (my guess is $14.00 on next wave). WERD, you need to read the filings. The S-3 on 3/28/22 spelled it all out and "no" it's no boilerplate language. It's what happens everyday on the OTC by TOXIC VULTURE LENDERS. Here's a copy and paste which suggests what "may be" coming after the Selling Shareholders finish selling their shares at current prices.

The Selling Stockholders may participate in short sales of our Common Stock. They may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of Common Stock in the course of hedging in positions they assume. The Selling Stockholders may also sell shares of Common Stock short and deliver shares of Common Stock covered by this prospectus to close out short positions and to return borrowed shares in connection with such short sales. The Selling Stockholders may also loan or pledge shares of Common Stock to broker-dealers that in turn may sell such shares. Such activity could cause a decline in the market price of the shares of our Common Stock.

https://www.otcmarkets.com/filing/html?id=15686204&guid=x56wkpNy09zNQth

JMO