Escrow Watch: 678m shares about to flock onto the ASX
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Here’s our fortnightly list of ASX small caps with big parcels of shares coming out of ‘escrow’.
Escrow refers to shares that are held by early investors or directors restricted from selling for a year or two. The release of escrowed shares can have a big impact on a stock price.
There’s a bakers dozen of small cap companies releasing shares from escrow before the end of November — and nearly 678 million shares are ready to hit the ASX.
As Stockhead reported last week, 224 million Zelda Therapeutics (ASX:ZLD) shares are ready for release on November 22, making up about 29 per cent of the company’s issued total.
But the medicinal cannabis developer reassured shareholders, saying directors and founders Harry Karelis, Dr Stewart Washer, Mara Gordon and Jason Peterson would not sell any shares they own or control for the next year — unless it helped on-board a significant investor.
“The commitment has been entered into by the founders to clearly demonstrate their true belief in the company’s future and business plan,” the ASX release stated.
Mr Karelis said a voluntary extension of the escrow period demonstrated the founders were in it for the long haul.
Flamingo AI (ASX:FGO) also has a huge whack of shares coming out of escrow, with 212 million to be released on November 27, about 19 per cent of the company’s total.
Flamingo says the majority of shares are held by the company’s founders, but fear not, as CEO and founder Dr Catriona Wallace will keep her 148m shares which are due to be released from escrow.
Dotz Nano (ASX:DTZ) has the highest proportion of shares coming out of escrow, with 33pc of its total, or nearly 61m shares, being released on November 15.
It says they were originally issued to “related parties, seed capitalists, vendors and promoters” as part of the company’s pre-IPO funding round.
Both K2Fly (ASX:K2F) and Great Boulder Resources (ASX:GBR) have about a quarter of their shares coming out of escrow.
And after releasing more than half of its total issued shares from escrow earlier this month, Apollo Tourism & Leisure (ASX:ATL) is now releasing a further 0.4pc, or a tick over 680k.
Here’s a list of ASX stocks that have signalled escrow releases before the end of this month:
Scroll or swipe to full reveal table. Click headings to sort
|Asx code||Company||Date released||Escrowed shares||% of all shares|
|FCT||Firstwave Cloud Technology||20-Nov||33,685,016||15%|
|BC8||Black Cat Syndicate||24-Nov||2,000,000||3%|
|ATL||Apollo Tourism & Leisure||26-Nov||680,082||0.4%|
|GBR||Great Boulder Resources||19-Nov||20,284,643||25%|