One of Mullen Automotive’s (NASDAQ:MULN) partners is facing serious charges — the SEC charged the Mullen financier with insider trading on another particular stock the day before Mullen and Acuitas Group made revisions to an agreement.
Mullen Automotive, Acuitas Group, and Acuitas CEO Terren Peizer have a long history.
The three parties have been involved in several financing agreements in the form of dilutive equity and debt.
Yesterday, the electric vehicle (EV) company announced that it had amended an agreement with Acuitas on March 2, bypassing the fact that its CEO was just charged with insider trading.
The amendment would see Acuitas purchase Series D preferred stock and warrants worth $20 million with an exercise date of June 1.
On March 1, it was announced that the SEC had charged Terren Peizer with insider trading for selling over $20 million worth of Ontrak (NASDAQ:OTRK) while in possession of material, nonpublic information concerning the company’s largest customer.
Peizer stepped down as CEO of Ontrak following the announcement.
The U.S. Department of Justice also announced criminal charges against the former CEO.
How This Affects MULN Shareholders
An amended Schedule 13G filing shows that Peizer owned zero shares of MULN common stock as of Dec. 31.
At the same time, he also held warrants that could be exercised into 148.55 million shares and $32.86 million worth of convertible notes.
Mullen’s resale filing, dated Feb. 16, noted that Acuitas would own just three shares of common MULN stock upon the completion of the offering.
Shareholders own hundreds to several thousands of shares of the company.
The deal between Acuitas and Mullen Automotive is rather sketchy and doesn’t portray the company in a positive light despite its recent and positive developments.
Mullen has recently partnered with Menzies Aviation and is currently on track to debuting two EV commercial products at the NTEA Work Truck Show this week.
I’m curious to know from shareholders — how do you feel about Mullen Automotive’s financiers?
Peizer, who was just charged with insider trading was also granted warrants by Mullen that could be exercised into more than $32 million without owning a single share.
Is this suspicious in your opinion?
Leave your thoughts below.
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Thow the Chief in JAIL and keep him there. Also tie up all his assets. Never let him be involved in any Markets again. We don’t need a return of CROOKS.
They need to slim down and put in HONEST people.Throw the Chief in JAIL and keep him there . Also take all his assets. They can’t be allowed to do it again.
Put them in jail, along with the accountant also. Talking about the one that operated for MULN, until changing to a place of many accountants at a different company, that all work the same books, with each other. Not enough people at that place, to be able to hide. Just a thought, in case that person might want to consider, turning himself in, also.
The financier is just one of MULN’s lenders, but I see what you’re saying. There has to be accountability from all parties involved.
throw him in prison
Hope Mullen Automotive can partner with more credible financiers – this does not look good. Many investors are rooting for the company’s fundamental growth.
Leave your thoughts on the latest Mullen Automotive news below.