Mullen Automotive (NASDAQ:MULN) stock is in focus following the submission of a Form 4 from CEO and President David Michery. The filing shows that Michery is set to earn 8.65 million shares for satisfying specific milestones in his Performance Stock Award Agreements dated May 5, 2022 and June 8, 2023. The transaction date on the filing is listed as Oct. 10.
The CEO also disclosed that he has been granted another 1 million shares as part of Mullen’s 2022 Equity Incentive Plan. This transaction date is listed as Nov. 2.
The footnotes of the filing state that these shares have been approved, but not yet issued to Michery. Once these shares are issued, Michery’s stake will increase to 10.97 million shares of MULN stock. The Form 4 may contain an error or omission, as it says that Michery’s stake will increase to 10.98 million shares, reflecting 10,000 shares that are not documented in the filing.
Let’s dive into Michery’s Performance Stock Award Agreements.
CEO David Michery Set to Earn 9.65 Million Shares of MULN Stock
Mullen has not disclosed which exact milestones that Michery has accomplished. Based on the earlier stock award agreement, Michery may have received shares for satisfying a vehicle delivery milestone that reads:
“Producing a drivable prototype of its Mullen 5 vehicle for consumers to test by end of October 2023.”
Upon completion of the milestone, Michery is eligible to receive 2% of all issued and outstanding common stock. Michery is also eligible to receive another 2% of shares if he produces a drivable prototype of the Mullen 5 RS High Performance for customers to test by January 2023.
For the stock award agreement dated June 8, Michery is eligible to receive 3% of all issued and outstanding shares if Mullen receives full U.S. certification and homologation of the Mullen THREE by the end of December 2023. Mullen announced on Sept. 25 that the THREE had received EPA certification and had completed the Federal Motor Vehicle Safety Standards (FMSVV) testing requirements as well. Still, the company made no mention of achieving full U.S homologation, so it is unclear whether this milestone has been met.
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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.