Form 4: CETY CEO's Trust Acquires 500K Stock Warrants

Clean Energy Technologies CEO Kambiz Mahdi's living trust acquired a warrant to purchase 500,000 shares of company common stock from Mast Hill Fund, L.P. for $10.00.

Summary

• Kambiz Mahdi, CEO and Director of Clean Energy Technologies, Inc. (CETY), reported a change in beneficial ownership.
• The Kambiz & Bahareh Mahdi Living Trust, beneficially owned by Mr. Mahdi, acquired a Common Stock Purchase Warrant.
• The warrant was purchased from Mast Hill Fund, L.P. for $10.00.
• This warrant allows the holder to purchase 500,000 shares of CETY common stock at an exercise price of $2.00 per share.
• The warrant was originally issued by CETY to Mast Hill Fund, L.P. on December 5, 2024, and expires on December 5, 2026.
• The Purchase and Assignment Agreement was entered into on December 1, 2025, and the transaction closed on December 3, 2025.

Sentiment

Score: 7

Explanation: The CEO's trust acquiring a significant number of warrants at a nominal price, with an exercise price of $2.00, indicates a strong belief in the company's future stock appreciation. This insider confidence is generally viewed as a positive signal for investors, suggesting management sees significant upside potential.

Positives

• The CEO's trust acquiring warrants could signal confidence in the company's future prospects, as the warrants only become profitable if the stock price rises above the $2.00 exercise price.
• The acquisition price of $10.00 for warrants to purchase 500,000 shares suggests a very low cost basis for potential future equity ownership, indicating a strategic long-term view.

Negatives

• The transaction itself does not present explicit negatives for the company, but rather reflects an insider's investment decision.

Risks

• The value of the acquired warrants is dependent on the future market price of CETY common stock exceeding the $2.00 exercise price. If the stock price does not rise, the warrants may expire worthless.
• Potential dilution for existing shareholders if the warrants are exercised, adding 500,000 shares to the outstanding common stock.

Future Outlook

The acquisition of these warrants by the CEO's trust suggests a long-term bullish outlook on the company's stock performance, as the warrants are only valuable if the stock price exceeds the $2.00 exercise price by the December 5, 2026 expiration date.

Management Comments

• The Kambiz & Bahareh Mahdi Living Trust, which may be deemed to be beneficially owned by the Company's CEO, Kambiz Mahdi.

Industry Context

This transaction is an insider acquisition of derivative securities, a common occurrence in the public markets. It reflects an individual executive's investment decision rather than a broader industry trend or competitive action. In the clean energy sector, such insider confidence can be viewed positively, especially given the long-term growth potential often associated with the industry.

Related Party Transactions

• The transaction involves The Kambiz & Bahareh Mahdi Living Trust, which is beneficially owned by the company's CEO, Kambiz Mahdi. This constitutes a related party transaction as an insider is involved in the acquisition of company-related securities from a third party.

Stakeholder Impact

• Shareholders: Potential positive signal due to insider confidence; potential future dilution if warrants are exercised.
• Management: Kambiz Mahdi's trust now holds a significant derivative position, aligning his personal financial interests more closely with long-term stock performance.

Next Steps

• The Mahdi Trust may choose to exercise the warrants to acquire common stock before the December 5, 2026 expiration date, should the stock price be favorable.

Key Dates

Recommendation

While the CEO's trust acquiring warrants signals strong insider confidence and potential future upside, the immediate impact on the company's fundamentals is limited. The warrants are a derivative instrument, and their value is contingent on future stock performance. Investors should 'hold' to observe how this insider confidence translates into operational results and stock price movement, rather than making immediate buy or sell decisions solely based on this transaction.

Keywords

Clean Energy Technologies, CETY, Kambiz Mahdi, SEC Form 4, Insider Trading, Warrant Acquisition, Beneficial Ownership, CEO, Stock Warrants, Mast Hill Fund