Mullen Automotive Inc (MULN)

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The company has put itself into a bind with its non-delivery of revenue producing product.

Scenario 1: They want to stay on the Russell
If they want to stay on the Russell, keep the little bit of institutional holding they have, and also keep some semblance of respectability, they will need to do a reverse split next month. The problem is, with a 1:25 max reverse split allowed, by shareholder vote, the price will only be about $2.50/share. They will then be shorted again as they dilute even more and the share price will again fall below the $1 NASDAQ threshold. NASDAQ rules say they will be delisted if they try a 2nd reverse split in a timeframe of less than 2 years.

Scenario 2: They don't stay on the Russell
Assuming they don't get caught in the $0.10 rule, they have into September to do the reverse split. But going off the Russell will cost them the institutional investors they have, make funding even more difficult, and get rid of what little credibility they did have. They'll reverse split and hope for the best but, they will then be shorted again as they dilute even more and the share price will again fall below the $1 NASDAQ threshold. NASDAQ rules say they will be delisted if they try a 2nd reverse split in a timeframe of less than 2 years.