Last week, Mullen Automotive (NASDAQ:MULN) filed a proxy statement to document its upcoming special meeting of stockholders on Dec. 15. The filing revealed that Mullen has proposed a reverse stock split in a ratio between 1-for-2 and 1-for-100. The electric vehicle (EV) company only intends on enacting a reverse split if its shares cannot reach $1 organically in order to satisfy the Nasdaq minimum bid price requirement.
In the same filing, Mullen revealed that there were 287.17 million shares of MULN outstanding as of Oct. 17. It also disclosed the amount of shares owned by its nine named executive officers and directors. CEO David Michery is the largest executive shareholder of the company with ownership of 1.32 million shares, which is equivalent to a 0.46% ownership stake.
MULN Stock: Mullen Execs Own Just 0.46% of Shares Outstanding
However, no other named executive or director besides Michery owns more than 2,300 shares. The second-largest executive shareholder is Director Jonathan K. Anderson, with ownership of 2,223 shares worth about $600. In third place comes Director Ignacio Novoa, who owns just 1,814 shares worth about $490. At the bottom of the list is CFO Jonathan New with ownership of 39 shares worth about $11 and Director Kent Puckett with a zero-share stake.
Excluding Michery, the eight named executive officers and directors own just 6,636 shares worth about $1,800. When adding the stakes of these eight executives and directors to Michery’s stake, the combined ownership clocks in at 0.462%. That doesn’t allude to conviction in their own company at all, especially when considering that some retail investors own more shares than executives and directors at the company.
Meanwhile, Acuitas Capital and Esousa Holdings are listed as 5% beneficial owners of MULN stock. Acuitas beneficially owns 85.76 million shares, while Esousa owns 66.72 million shares. Acuitas’ stake consists entirely of common stock issuable upon the exercise of warrants, while Esousa’s stake consists of 55.48 million shares issuable upon the exercise of warrants. That signals more dilution for shareholders when these two entities decide to exercise their warrants.
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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.
