Mullen Automotive, Inc. (NASDAQ:MULN) shares are trading higher on Wednesday after the company announced it entered into securities purchase agreements following its 1-for-100 reverse stock split.

What To Know: The company said it entered into two securities purchase agreements involving the sale of 5% original issue discount secured notes and five-year cash-exercisable warrants.

Under the first agreement, Mullen issued about $11.6 million in notes and warrants to purchase 1.65 million shares of common stock.

In the second agreement, the company issued approximately $2.8 million in notes and warrants for 387,969 shares.

Both agreements involve notes that are convertible into common stock, with all terms adjusted to reflect the reverse stock split effective June 2.

MULN Price Action: Mullen shares closed Wednesday 198.70% higher at $16.10, according to data from Benzinga Pro.

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Image: Courtesy of Mullen Automotive, Inc.