Mullen Automotive (NASDAQ:MULN) is in focus today after CEO David Michery received 45.88 million shares of MULN stock at no cost as part of a performance stock award agreement and equity incentive plan. Last month, Michery received 9.62 million shares from the agreement as well.
Of the 45.88 million shares, 44.88 million shares were attributed to performance. Meanwhile, the remaining 1 million shares were attributed to the incentive plan. The day after receiving the shares, Michery gifted 17.95 million shares to an undisclosed party. This lowered the CEO’s total share count to 43.77 million.
Mullen President Calin Popa and Chief Accounting Officer (CAO) Kerri Sadler have each received 300,000 shares each at no cost as part of the same incentive plan.
This company has had a busy year, no doubt. In September, Mullen paid $148.2 million to acquire a 60% stake in Bollinger Motors. Mullen also technically won the Electric Last Mile Solutions (OTCMKTS:ELMSQ) bankruptcy auction with a stalking horse bid of $92 million. However, shareholder dilution seems to be a major problem for the electric vehicle (EV) company.
MULN Stock: CEO David Michery Receives 46 Million Shares
Upon completing a reverse merger with Net Element in November 2021, there were 51.17 million shares of MULN stock outstanding. Based on a 13G form filed by Robert Bollinger, there are 746.61 million shares outstanding as of Sept. 14. That means that outstanding shares have increased by 1,359% in less than a year.
It appears that Michery received 44.88 million shares for completing the feature milestone in his performance stock award package. The milestone reads:
“If Mullen enters into an agreement with a manufacturer or provider of equipment, accessory, feature or other product […] by the end of 2023 that sets the Company or its vehicle apart from its competitors or that provides the Company a first mover or first disclosure advantage over its competitors for the Feature, the Company will issue to Mr. Michery a number of shares of Common Stock equal to 5% of the Company’s then-current total issued and outstanding shares of Common Stock as of the date the Feature milestone is achieved.”
On Sept. 1, Mullen announced a partnership with Watergen. The partnership will see Mullen equip its EV cargo vans with Watergen’s air-to-water technology, which can produce five liters of drinking water a day while a vehicle is moving. Michery stated that Mullen will be the “first automotive company to co-develop this technology.”
This announcement suggests that the CEO has accomplished the feature milestone. Mullen aims to initiate testing of the air-to-water technology during the first quarter of next year.
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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.