Following the award, Michery gifted 5.3 million shares to an unknown recipient on Nov. 30. The next day, he gifted another 50,000 shares to an unknown recipient. After the transactions, he now owns a total of 79.5 million shares.
The transactions are similar to previous Form 4s received by the Securities and Exchange Commission (SEC). On Nov. 9, Michery received 24.62 million shares and gifted 12.31 million shares to an unknown recipient on the same day. In addition, Michery received 45.88 million shares on Oct. 12 and gifted 17.95 million shares to an undisclosed recipient on the same day. Since October, Michery has gifted a total of 35.61 million shares to an unknown recipient or recipients.
MULN Stock: Michery Awarded 28.76 Million Shares
The big question is, who exactly is Michery gifting these shares to? The CEO isn’t required to disclose the recipients of the gifts, so investors are only left to speculate. However, it is known as to why Michery is receiving these shares at no cost.
It appears that Mullen has satisfied the Distribution Milestone as part of his performance stock award agreement. The milestone reads:
“For each vehicle distribution milestone set forth below that is satisfied by entering into a joint venture or other distribution agreement by December 31, 2024, the Company will issue to Mr. Michery a number of shares of Common Stock equal to 2% of Mullen’s then-current total issued and outstanding shares of Common Stock for each distribution milestone achieved: (i) agreement with an established local, US dealer or franchise network; and (ii) agreement with an established Latin American or other non-US based dealer or franchise network.”
As of Nov. 17, there were a total of 1.44 billion shares outstanding. 2% of those shares is 28.76 million shares.
Last month, Mullen announced it had appointed Newgate Motor Group as its sales and distribution agent for the I-GO in Ireland. Newgate has operated in the motor industry for over 40 years and is Ireland’s top retailer for new and used Mercedes Benz (OTCMKTS:MBGYY) and Hyundai Motor’s (OTCMKTS:HYMTF) Kia vehicles. Mullen also noted it will enter into a dealer agreement with Newgate to address the terms of the purchase of testing vehicles and a 500-vehicles-per-year purchase order. Newgate is expected to receive the first shipment of I-GOs on Dec. 20.
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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.