Shares of Helbiz (NASDAQ:HLBZ) are in the green following an expansion into the Washington, D.C. area and another insider purchase by CEO Salvatore Palella. The micro-mobility company announced it will launch 350 of its new electric bikes in the cities of Arlington and Alexandria, Virginia. The company also extended its permit for its fleet of scooters in D.C. until Dec. 31 of this year.
After a “competitive process,” Helbiz was selected as Alexandria’s new micro-mobility provider and will also expand its existing program in Arlington to include e-bikes. The two cities will be the first market in the D.C. area to provide the e-bike, which comes with GPS technology, a lock system and a front basket.
“We are proud to continue growing with how we service the D.C. area, adding a new city with Alexandria and expanding our fleet in Arlington. The Helbiz e-bike is the most advanced bike available in the D.C. area, offering riders a safe, energy-efficient way to get where they need to go.”
Palella’s upbeat comments were echoed by his insider purchase. Let’s get into the details.
Why Is HLBZ Stock Up Today?
Today, Palella disclosed through a Form 4 that he had purchased 252,636 shares. The shares were purchased “Pursuant to a Securities Purchase Agreement dated August 15, 2022” with Newven. Furthermore, the shares were purchased at $3 per share, more than 100% higher than the current market price. After the purchase, Palella remains the largest shareholder with a 5.12 million share stake.
After today’s purchase, the CEO has now purchased HLBZ stock on seven separate occasions this year. Meanwhile, no other Helbiz insider has purchased shares on the open market year-to-date. Palella’s largest purchase occurred on June 6, when he purchased 2.04 million shares in a single transaction.
According to Yahoo! Finance, insiders own 97.73% of all shares outstanding. Meanwhile, 17 institutions own 8.29% of all shares outstanding. There is an overlap here, which can be attributed to two reasons. Institutional investors may own warrants to acquire shares that when exercised create new shares. This has a dilutive effect on existing shareholders. Institutional investors may also classify as insiders if they own a 10% or greater stake in a class of shares.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.