Mullen Automotive (NASDAQ:MULN) stock is in focus following the submission of a Form 4 from CEO David Michery. On June 13, Michery received 2.63 million shares as part of a 2022 performance stock award agreement. Two days later, the CEO transferred 2.09 million shares to an unknown recipient, as evidenced by transaction code “J.” On the same day, he also gifted 541,813 shares to an unknown recipient.
Following the transaction, the Form 4 states that Michery now owns a total of 113.66 million shares. However, this figure does not appear to have been adjusted for the 1-for-25 reverse stock split initiated last May. A Form 4 dated Feb. 16 showed that he owned 113.66 million shares as well.
Michery has a history of receiving shares from his performance stock award agreement or equity incentive plan and then subsequently transferring, gifting or selling them. Last February, he received 16.68 million shares through his performance agreement and then sold 14.93 million shares on the same day. He also received 6 million shares through his incentive plan. After that, Michery gifted 5 million shares and transferred 1 million shares.
Mullen CEO David Michery Receives 2.6 Million Shares of MULN Stock
Michery’s 2022 performance award agreement allows Michery to receive large amounts of shares for various milestones. Mullen has not disclosed which milestone Michery achieved to receive the 2.63 million shares, although investors can infer. The capital benchmark milestone states that he will receive 1% of all issued and outstanding shares for each $100 million raised in debt and equity financing, up to $1 billion. The milestone will expire in July 2024.
As of June, there were 263.27 million shares of MULN stock outstanding. Michery’s award of 2.63 million shares roughly matches up to 1% of all common stock issued and outstanding, although it may not be exact because the shares outstanding figure as of June could have increased.
Michery also previously completed the feature milestone, which states that he will receive 5% of all issued and outstanding common shares for entering into an agreement that will set the company or its vehicles apart from competitors or provides Mullen with a first-mover or disclosure advantage. Last September, Mullen announced it had signed an agreement with Watergen to equip its vehicles with technology that will provide drinking water from the air. Mullen has not specified whether its vehicles will actually contain this technology.
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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.
