ASX Escrow Watch: Which lithium plays are releasing shares heading into 2023?
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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.
The coal miner will release 27,941,177 quoted fully paid ordinary shares from escrow.
BCB is Queensland-based and has two mines in production, a third in development and several advanced exploration assets.
As Stockhead’s Josh Chiat noted “coal prices have been extraordinary in 2022”. BCB has been one of the beneficiaries of the rising coal price, with its share price up more than 68% year to date.
The junior exploration company established to acquire, explore and develop lithium mines in Brazil and Australia will release 450,000 fully paid ordinary shares from escrow on December 29 and a further 450,000 on December 31. OCN also released 189,000 fully paid ordinary shares 23 December, 2022.
The company has exposure to two highly prospective lithium exploration projects in known lithium-bearing regions of Brazil and the Northern Territory.
After making its ASX debut on July 1 the OCN has seen its share price rise with the popularity of the lithium sector this year and is up 80% year to date.
The emerging WA gold and base metals producer will release 9.3 million ordinary fully paid shares along with 11.3 million options with an exercise price of 25 cents expiring on or before September 11, 2025.
BPM said of the 9.3 million ordinary shares being released from escrow, 7.9 million are held by company directors who have confirmed their commitment to maintaining their shareholding.
BPM recently appointed exploration veteran Oliver Judd as its new CEO to oversee the company’s WA gold and base metals’ operations in 2023.
The BPM share price is down more than 48% year to date.
There are several ASX companies releasing shares on the last day of 2023 along with OCN. Lithium junior LPM, will release 3 million fully paid ordinary shares from imposed mandatory escrow after releasing almost 3 million shares earlier this month.
LPM will apply for quotation of the escrowed Shares upon their date of release. Furthermore, the LPM said there will be no change to the issued capital in the company as a result of the escrowed shares.
The LPM share price has risen 36% year to date.
KYP has a product suite of pre-employment screening and background checks . Previously known as CVCheck with the ticker CV1, in October KYP changed its name.
The company’s share price has fallen ~50% year to date.
Meal kit stock MBX will release 1,833,330 fully paid ordinary shares from mandatory escrow restrictions. The company will apply for quotation of the shares.
Furthermore 7,333,320 convertible loan options will be released from mandatory escrow on December 31, 2022. It has not been a good year for MBX with its share price down ~57% year to date.
PBP will release 1,842,267 fully paid ordinary shares from escrow. The shares were part of company’s acquisition of the Multipack-LJM businesses.
PBP said 3,684,536 fully paid ordinary shares were issued to the vendors and its associated entities with 50% subject to escrow for 1 year and the remaining 50% subject to escrow for 2 years.
On January 1, 2022 there were 1,842,269 shares released from escrow with the remaining 1,842,267 shares to be released from escrow on 1 January 2023.
PBP develops, manufactures and sells pharmaceuticals, consumer health and nutraceutical products in Australia and international markets.
Its share price is up 1.83% year to date.
The rare earths explorer will release 5,675,000 fully paid ordinary shares. OD6 recently announced preliminary airborne electromagnetic survey data shows vast scale of target areas at its Splinter Rock project near the coastal WA town of Esperance.
OD6 joined the bourse in June and has seen its share price rally 55% year to date.
OLY has announced 27,500 ordinary fully paid shares currently classified as restricted securities will be released from escrow. OLY said it will apply for quotation of the shares within 5 business days after the end of each escrow period.
OLY also released ~350,000 shares from escrow at the end of November and various dates in December.
The former pot stock OLY re-listed as a WA gold, nickel, and lithium explorer in May this year after raising $6m at 20 cents/share.
FLX will release 23,935,937 fully paid ordinary shares from mandatory escrow. The shares were classified by the ASX as restricted securities for a period of 24 months from 12 January 2021.
FLX connects contractors and third-party vendors by digitising, automating, and streamlining a range of critical procurement-related business processes, reducing supply chain risk and improving transparency and governance.
FLX will seek quotation of the shares on January 11 and said their release from escrow won’t change the issued capital of the company. Its share price is down ~59% year to date.
The WA gold explorer is due to release a number of shares on January 14 including:
ODY recently reported thick gold intersections at its Tuckanarra JV Project where the most eastern line of drilling returned hits up to 21m at 3.3g/t gold from 65, including 11m at 5.5g/t gold from 66m, and 9m at 2.7g/t gold from 29m.
The ODY share price has fallen ~40% year to date.