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Escrow Watch
Escrow Watch is Stockhead’s monthly recap of the ASX companies that are releasing shares currently in escrow (also known as restricted securities) over the coming weeks.
ASX shares in escrow are “locked away” and not listed on the bourse so owners can’t sell them – until they’re released.
This is intended to depict to would-be investors when raising capital that the management and previous investors are still backing the venture and aren’t raising capital just so they can “sell out”.
While there’s no guarantee holders of escrowed shares will sell at that point, the mere fact that they will be able to is worth knowing – particularly if shares have substantially moved one way or the other.
Click here for a more detailed description of the ASX rules surrounding escrow arrangements. As we head into a new year there are quite a few ASX companies due to release shares.
CR9 will release 109 million ordinary fully paid shares, 24,455,157 unlisted options exercisable at 3 cents with an expiry of three years from date of issue and 50 million unlisted options exercisable at 4 cents with expiry of four years from date of issue.
The company will apply for the quotation of the 109 million ordinary fully paid shares.
CR9 said ‘outstanding’ results from its 2022 aircore drilling at the Tampu project in WA position it as a global supplier of High Purity Alumina (HPA) feedstock to lithium-ion battery markets.
LLI will release 1 million ordinary fully paid shares (LLIESCAP) and 200,000 ordinary fully paid shares (LLIESC26) on April 30, which it said are currently quoted.
The 1 million shares relate to LLI’s (formerly Monger Gold) acquisition of the Brisk Lithium Project located in the James Bay Lithium District, Quebec.
The 200,000 shares relate to LLI’s acquisition of the Trieste Lithium Project also in the James Bay Lithium District.
LLI will also release 3,499,999 ordinary fully paid shares (Note 3:LLIESC27) on May 16, which it said are currently quoted on the ASX and were issued on February 16, 2023 but subject to a voluntary escrow period of three months.
ALB will release 12,628,425 fully paid ordinary shares and 3 million options exercisable at 25 cents on or before January 21, 2024.
The company will apply to ASX for quotation of the fully paid ordinary shares so released.
ALB’s main projects include Lennard Shelf (zinc, lead) and ‘Leinster’ (nickel, copper, gold), both in WA.
Recent drilling at Leinster hit “several broad intersections of nickeliferous ultramafic rocks”, with a peak result of 24m @ 0.31% Ni from 16m, including 8m @ 0.50% Ni from 20m.
The gold and battery-metal exploration company will release 4,925,000 ordinary shares from escrow. DES recently started work programs at its Shoobridge lithium project alongside drill targeting at its Fenton gold project, both in the Northern Territory.
Ground reconnaissance, mapping and field work are planned at Shoobridge in advance of a regional-scale stream sampling program targeting lithium potential ~1-3km outboard of mapped granite contacts.
Beyond lithium and gold, DES has also identified its highest priority manganese project and country target areas – specifically South America and West Africa.
DGL will release 74,189 quoted fully paid ordinary shares from voluntary escrow. The shares were issued to vendors as part consideration for the acquisition of Total Coolants and were subject to a voluntary escrow period of 12 months.
DGL is a diversified industrial group, specialising in the manufacture, transport, storage of chemicals and processing of hazardous waste.
MGA will release 250,000 fully paid ordinary shares classified as restricted securities when it made its IPO on July 6, 2022. MGA said it will apply for quotation of the escrowed shares upon date of their release and said there will be no change to the issued capital of the company following the release.
MGA still has more than 26 million ordinary shares, options and performance rights in escrow.
This recently listed minnow has been busy across a portfolio of lithium, rare earths, base metal and manganese projects in WA and the NT.
MGA recently announced reverse circulation drilling has intersected multiple stacked spodumene pegmatites at its Upper Coondina lithium project south of Mable Bar in Western Australia.
SSH will release 2,496,756 fully paid ordinary shares from escrow. The company still has more than 22 million ordinary shares due for release on September 17 along with 16 million options, 500,000 class A performance rights, 150,000 class B performance rights and 350,000 class C performance rights.
SSH also has more than 3 million fully paid ordinary shares due for release from escrow on November 14, 2023.
Headquartered in Western Australia, SSH operates businesses working in the construction, resources, and civil market sectors within Australia.
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