Escrow Watch: Check out who’s releasing a tsunami of stock onto the market this month
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Want to know when shares are coming out of escrow? We’ve been keeping tabs, so you don’t have to.
Every two weeks, Stockhead takes a look at the small cap companies that are releasing shares that have been locked away in escrow.
Escrow refers to shares that are held by early investors or directions restrained from selling for a year or two. The release of escrowed shares can have a big impact on stock price, because a sudden influx of stock onto the market can depress the shares you own.
Calidus Resources (ASX:CAI) has 35 per cent of its issued stock coming out, as it drops 570m shares onto the market.
The owner of 475m of these shares is Keras Resources, the company that sold Calidus the Warrawoona Gold Project. Calidus managing director David Reeves is the major shareholder and a director of Keras, which may mitigate the selling pressure.
It isn’t the only one diluting any on-market buyers, as ElSight’s (ASX:ELS) shares on issue are about to increase by a still sizeable but less impressive 51 per cent, as 48.5m currently unlisted shares are released onto the market this week.
The other notable releaser is Golden Mile Resources (ASX:G88) which will increase its public stock base by 28.5 per cent once those share come out at the end of June.