SCHEDULE 13D/A: Aeva Technologies CTO Mina Rezk Discloses 18.2% Stake and Recent Share Sale

Aeva Technologies, Inc.'s Chief Technology Officer, Mina Rezk, has filed an amended Schedule 13D, revealing a beneficial ownership of 18.2% of the company's common stock and a recent sale of 70,000 shares through a pre-arranged trading plan.

Summary

• Mina Rezk, Chief Technology Officer of Aeva Technologies, Inc., beneficially owns 10,214,205 shares of the company's common stock, representing 18.2% of the class.
• This ownership includes 92,514 shares held directly, 5,136,669 shares held by a trust for Mina Rezk's benefit, 3,560,000 shares held by EAD Group LLC (an affiliate), 1,373,552 shares underlying stock options exercisable within 60 days, and 51,470 shares underlying restricted stock units expected to settle within 60 days.
• The ownership percentage is calculated based on 56,138,710 total shares, which includes 54,713,688 shares outstanding as of March 1, 2025, plus exercisable options and settling restricted stock units.
• On March 10, 2025, a trust for the benefit of Mina Rezk sold 70,000 shares of common stock at a weighted-average price of $2.7907, for aggregate proceeds of $195,349.00, pursuant to a previously-adopted Rule 10b5-1 trading plan.
• Mina Rezk has pledged 3,560,000 shares of the Issuer as a first priority security interest to secure obligations under a margin lending agreement entered into by EAD Group LLC on June 16, 2022.
• The securities are held for general investment purposes, and the Reporting Person reserves the right to acquire or dispose of additional shares in the future.

Sentiment

Score: 4

Explanation: The sentiment is moderately negative due to the insider share sale and, more significantly, the pledging of a large block of shares under a margin loan, which introduces potential downside risk from forced selling. While the CTO retains a large stake, these actions could be viewed with caution by investors.

Positives

• Mina Rezk, a key executive (CTO), maintains a significant beneficial ownership stake of 18.2% in Aeva Technologies, Inc., indicating continued alignment with shareholder interests.
• The recent share sale was conducted under a pre-arranged Rule 10b5-1 trading plan, suggesting a planned and not reactive transaction.

Negatives

• A trust for the benefit of Mina Rezk sold 70,000 shares of common stock, reducing the overall direct and indirect holdings.
• 3,560,000 shares of the Issuer are pledged as security under a margin lending agreement, which could lead to forced sales if margin calls are triggered.

Risks

• The pledging of 3,560,000 shares as collateral for a margin lending agreement exposes the shares to potential forced liquidation if the loan obligations are not met or if margin calls are triggered due to a decline in the Issuer's stock price.

Future Outlook

The Reporting Person, the Trust, and EAD Group LLC hold the securities for general investment purposes and reserve the right to formulate future plans, including acquiring additional shares or disposing of existing shares, in open market or private transactions, or through Rule 10b5-1 trading plans.

Management Comments

• "The Reporting Person, the Trust and EAD hold the securities of the Issuer for general investment purposes."
• "The Reporting Person, the Trust and EAD reserve the right, based on all relevant factors and subject to applicable law or other restrictions, at any time and from time to time, to acquire additional shares of Common Stock or other securities of the Issuer, dispose of some or all of the shares of Common Stock or other securities of the Issuer that it may own from time to time."

Industry Context

NA

Related Party Transactions

• EAD Group LLC, an affiliate of Mina Rezk, entered into a margin lending agreement where Mina Rezk pledged shares to secure obligations.

Stakeholder Impact

• Shareholders: The sale of shares by a key executive might raise questions about management's confidence, though the 10b5-1 plan mitigates this. The pledging of shares creates a potential overhang on the stock, as forced sales could dilute value or depress prices.

Next Steps

• The Reporting Person, the Trust, and EAD Group LLC reserve the right to acquire additional shares or dispose of existing shares in the future.
• Future transactions may occur in open market or private transactions, block sales, or through Rule 10b5-1 trading plans.

Key Dates

Recommendation

Keywords

Aeva Technologies, Mina Rezk, Schedule 13D, Beneficial Ownership, Common Stock, CTO, Share Sale, Rule 10b5-1, Margin Loan, Pledged Shares, SEC Filing, AVYA