Escrow Watch: 313 million shares are about to snow onto the ASX
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Escrow Watch is Stockhead’s fortnightly recap of the small cap companies releasing shares that have been locked away in escrow.
Escrow refers to shares that are held by early investors or directors restrained from selling for a year or two.
The release of escrowed shares can have a big impact on a stock’s price. If the holders choose to take up their right to sell – the shares you own can fall.
In the next fortnight 12 small caps are releasing over 313 million shares between them.
|Code||Company||Date of Release||Shares||% of company|
|OTW||Over the Wire||6 December||567,392||1.10%|
|ROO||Roots Sustainable Agricultural Technologies||6 December||18,758,654||16.26%|
|RHY||Rhythm Biosciences||7 December||38,500,000||38.21%|
|SPX||Spectrum Metals||9 December||146,818,182||10.60%|
|P2P||P2P Transport||13 December||27,840,000||29.65%|
|CWX||Carawine Resources||13 December||2,289,257||2.96%|
|GEV||Global Energy Ventures||15 December||2,769,234||0.07%|
The company releasing the most shares is gold explorer Spectrum Metals (ASX:SPX). It began this financial year at 2.1c but now sits at 7.8c.
The company releasing the most as a portion of shares on the market is car park solutions provider PARKD (ASX:PKD). It is releasing 48 per cent of its share capital, or 36 million shares.
Another company dropping a big pile of stock is Rhythm Biosciences (ASX:RHY). The 38.5 million shares being released amount to 38 per cent of the company.
Roots Sustainable Agricultural Technologies (ASX:ROO), one of the few small caps involved with plant based meat, is releasing over 18 million shares representing 16 per cent.
And Osteopore (ASX:OSX), which only listed in September and has become a three-bagger, is releasing 6.2 per cent of its shares from escrow.