Mullen Automotive (NASDAQ:MULN) stock is in the spotlight after two new Securities and Exchange Commission (SEC) filings revealed new details about the company.
The first filing, an 8-K, confirmed Mullen’s partnership with DelPack Logistics (DPL), an Amazon (NASDAQ:AMZN) delivery service partner. DPL was founded in 2020 and provides last-mile shipping services for “urban and non-urban areas” in Indiana. The binding agreement states that DPL will order up to 600 Mullen Class 2 Electric Cargo Vans during the next 18 months. The first 300 “fully homologated” vans for the U.S. can be delivered to DPL by Nov. 30 at its request. Furthermore, the vans will be equipped with an 80 kilowatt per hour battery back.
The 8-K also revealed that the “one-time special purchase price” for the vans sold to DPL will be $35,000. That would equate to revenue of $21 million if DPL were to purchase all 600 vans.
With that in mind, let’s take a look at the second SEC filing.
MULN Stock: SEC Filings Confirm DPL Partnership
The second filing, a Schedule 14A, details CEO David Michery’s compensation package and voting rights and milestones to promote shareholder value.
Moreover, the filing provides more information about the “major, major Fortune 500 company” customer that Michery previously hinted at. It states that Mullen delivered its Class One Van to a telecommunications provider under a pilot program on May 12. Michery had previously disclosed that the recipient of the pilot program was “pleased” with the results of the trial.
As a result of this program, Michery will be compensated with 2% of all shares outstanding, pending shareholder and Compensation Committee approval. There are also four other pending milestones in which Michery will be able to receive 2% of all shares. These milestones include producing a drivable prototype of the Mullen 5 for customer testing and receiving full U.S. certification and homologation for the sale and delivery of the Class One Van.
The 14A Also Details CEO Compensation
In addition, the Schedule 14A also provided details about Mullen’s capital benchmark milestones. For each $100 million raised, the company will issue shares equivalent to 1% of all shares outstanding. This will be effective up to $1 billion raised.
Michery currently owns 7.91 million shares of MULN stock, representing a 1.7% stake. He notified the board that he will not exercise any voting rights for Proposal 4, which is outlined in the Schedule 14A. As a result, Michery will only control the voting rights of 1.7% of shares outstanding for the purpose of this vote. The filing notes that “other Company stockholders will determine how to vote the other outstanding shares.”
On the date of publication, Eddie Pan held a LONG position in AMZN. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.