Escrow Watch: 250 million shares are due to hit the ASX
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Every two weeks Stockhead publishes a list of ASX small caps with parcels of shares coming out of “escrow”. Escrow typically refers to shares that are held by early investors or directors who are restricted from selling for a period of one to two years.
The release of shares from escrow can have a big impact on a company’s share price. Each month ASX notices signal millions of securities due for release.
More than 250 million restricted shares from a dozen ASX small caps are due out of escrow before the end of the month.
Internet-of-Things company CCP Technologies (ASX:CT1) has the greatest volume of shares due for release, with 71.8 million shares or about 17 per cent of its total, avalable to hit the market from September 16.
CCP also told the market that 30 million milestone shares held under escrow had lapsed. The stock is trading at about 1.5c since topping out at 4.7c at the start of the year.
Chartered accountants Kelly Partners (ASX:KPG) has 62 per cent of its total issued shares coming out of escrow on september 27. That’s a total of 28.3 million shares compared to the 45.5 million it has on issue.
Gold explorer Riversgold (ASX:RGL), which is mining from Australia to Alaska and listed in October last year, has 26.5 million shares, or 32 per cent of its total, coming out of escrow on September 26.
Rightcrowd (ASX:RCW), a security and compliance tech company that listed on the ASX in September last year, has 9.2 million shares, 6.9pc of its total, coming out of escrow on September 15.
It advised investors that it has 66.8 million shares held in escrow until September next year. That makes up half of the company’s current total number of shares.
Kids smartwatch maker MGM Wireless (ASX:MWR) is releasing 149,000 shares from escrow — about 1.2 per cent of its total, on the 24th of September.
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|
|SFM||Santa Fe Minerals||15-Sep||500k||0.7%|