Net Element (NASDAQ: NETE) shares are rising premarket after Mullen Technologies, an electric vehicle company, executed a non-binding Letter of Intent with Unlimited Electrical Contractors Corp (UEC) to enter agreements for the purchase of up to 10,000 MX-05 electric vehicles.
Net Element's share price has benefitted from the deal as the company and Mullen entered a definitive merger agreement back in August. It is a stock-for-stock reverse merger with Mullen’s stockholders receiving most of the outstanding stock in the post-merger company.
UEC is an electrical contractor based in Florida and intends to be the first electrical contractor with an all-electric service fleet. The company said it will execute the purchase of 1,500 MX-05 vehicles for its Florida operations, followed by an additional 8,500 by 2025 for its US West Coast Expansion.
The initial purchase order is valued at approximately $75 million.
“We're very excited to work with UEC and are very fortunate that they see the value in Mullen and the MX-05 for their business. UEC's order is the first of many commercial fleet relationships we are currently working on,” commented David Michery, CEO and Chairman of Mullen.
Net Element’s stock price has increased 51.42% premarket, trading at $17.11, its highest level since the merger with Mullen was announced.