Net Element Enters Definitive Merger Agreement with Electric Vehicle Company Mullen Technologies

About Mullen Technologies:
Mullen Technologies is a Southern California-based licensed electric vehicle manufacturer with international distribution that operates in various verticals of businesses focusing in the automotive industry: Mullen Automotive, Mullen Energy, Mullen Auto Sales, Mullen Funding Corp., and CarHub. Each of these divisions provide Mullen with diversity of different products and services within the automotive industry.

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About Net Element
Net Element, Inc. (NASDAQ: NETE) operates a payments-as-a-service transactional and value-added services platform for small to medium enterprise (“SME”) in the U.S. and selected emerging markets. In the U.S., the Company aims to grow transactional revenue by innovating SME productivity services using blockchain technology solutions and Aptito, its cloud-based, restaurant and retail point-of-sale solution. Internationally, Net Element’s strategy is to leverage its omni-channel platform to deliver flexible offerings to emerging markets with diverse banking, regulatory and demographic conditions. Net Element was ranked as one of the fastest growing companies in North America on Deloitte’s 2017 Technology Fast 500™.  In 2017, Net Element was recognized by South Florida Business Journal as one of 2016’s fastest-growing technology companies.

MIAMI, Aug. 05, 2020 (GLOBE NEWSWIRE) — via NetworkWire — Net Element, Inc. (NASDAQ: NETE) (“Net Element” or the “Company”) today announced the execution of a definitive agreement to merge with privately-held Mullen Technologies, Inc. (“Mullen”), a Southern California-based electric vehicle company, in a stock-for-stock reverse merger in which Mullen’s stockholders will receive a majority of the outstanding stock in the post-merger Company.

Highlighted Terms of the Definitive Merger Agreement:

Under the terms of the agreement, Net Element’s wholly owned, newly formed subsidiary will acquire all the outstanding shares of Mullen.  Upon completion of the merger, Net Element shareholders will own 15% and Mullen shareholders will own 85% of the issued and outstanding shares of the combined Company.  Net Element has the right to acquire up to an additional 6.7% of the combined Company depending on the amount of loans from Net Element to Mullen prior to closing.

Immediately prior to completion of the merger, Net Element will, subject to Net Element’s stockholders’ approval, divest itself of its payments-processing business and portfolio.  The completion of the merger is subject to shareholder and NASDAQ approval, as well as other conditions referenced in the merger agreement.  Upon closing of the merger, Net Element’s current management team and board of directors will resign and be replaced by a management team led by David Michery, Mullen’s founder, chairman and chief executive officer and the Mullen-nominated board of directors.  The Company has obtained a fairness opinion satisfactory to its board of directors, and each company’s board of directors has approved the execution of the merger agreement.  Mullen’s shareholders have approved the execution of the merger agreement and the transactions contemplated in such agreement.

Additional details regarding the merger, including the complete merger agreement, may be found in Net Element’s report on Form 8-K, which was filed with the Securities and Exchange Commission (SEC) today, August 5th, 2020, and may be obtained from the SEC website at

“Our team at Mullen Technologies is very proud to take the next step in completing this acquisition of Net Element,” stated David Michery, CEO and Founder of Mullen Technologies,Inc.  “Mullen is dedicated to the development of environmentally friendly, affordable technology that will bring energy solutions to consumer products and communities in the near future.  This acquisition provides the resources that Mullen can utilize to execute on its business model to integrate state-of-the-art, clean-battery technology into personal and commercial vehicles, and eventually sustainable, reusable battery technology into everyday consumer products.”

Founded in 2014, Mullen, through ICI (Independent Commercial Importers), expects to launch the Dragonfly K50, a luxury sports car, in the first half of 2021.  Mullen currently operates seven retail locations throughout California, as well as one in Arizona.  Several national and local events, from the Los Angeles Auto Show to the New York International Auto Show, have showcased Mullen automobiles and concept cars.  Mullen’s Dragonfly K50 won the Governor’s Choice Award at the 2019 Balboa Bay Club’s Classic Auto Show. 

“We are excited to move forward with the proposed merger with Mullen Technologies. We are confident that this transaction will increase shareholder value in the long term,” commented Oleg Firer, executive chairman of Net Element.

BREA, CA / ACCESSWIRE / August 10, 2020 / Mullen Technologies, Inc. (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer and technology company, which previously announced a definitive agreement to merge with Net Element, Inc. (NASDAQ:NETE), in a stock-for-stock reverse merger in which Mullen’s stockholders will receive a majority of the outstanding stock in the post-merger company, today announced results from the independent testing of its licensed solid-state polymer battery technology undertaken by EV Grid, Inc. (“EV Grid“), an independent lab based in San Dimas, California.

The results provided support that the Company’s licensed battery technology may be capable of enabling an electric vehicle to travel 640 miles at a cruising speed of 55 mph on a flat surface, and 550 miles at a cruising speed of 75 mph, which could allow for significantly longer driving distances on a single charge than commercially available lithium batteries offer today.

The Company plans to use this technology in its 150 kWh battery pack in its MX-05 midsize SUV which is anticipated to be in production in 2022.

The Company licensed the battery technology through a partnership with BOAO Navigator Battery Holding, Ltd. Beijing, a R & D Solid State Battery Developer (“BOAO”). Further to the agreement with BOAO, Mullen holds the exclusive rights to utilize, sell or repack in any configuration, known or unknown, the Linghang BOAO solid state polymer BO360GN battery cell (the “Cell”) in North America and to register patents on behalf of the Company and BOAO for the Cell in North America.

Previous testing results from tests conducted by BOAO indicated that the Cell suffered no degradation when operating from -40 degrees Celsius to 60 degrees Celsius. In addition, under extreme driving conditions the battery pack suffered less than 2% degradation over 10,000 charge/discharge cycles. Charging from empty to full takes approximately 35 minutes utilizing a fast charger.

“We believe our licensed solid-state battery technology should provide us with an advantage over many other companies in the EV space as it could have the ability to provide vehicle owners with significantly increased range from a single charge,” said David Michery, Mullen’s Chief Executive Officer. “We believe the launch of our MX-05 will change the way that owners think about EVs and their capabilities.”

The Solid State battery pack is lighter than a typical lithium battery pack and while commercially offered lithium batteries require a cooling system, these solid-state batteries are naturally cooled, reducing additional energy usage and eliminating the requirement for an added cooling system. The technology is also safe and green, as it contains no combustible materials, unlike commercially available lithium batteries.

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