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.

Since Wednesday 15 small caps have released, or are set to release, over 326 million shares between them.

Code Company Date of Release Shares % of company
EXR Elixir energy 17 December 3,034,964 0.61%
CBY Cantebury Resources 18 December 24,063,192 29.40%
JAN Janison Education Group 19 December 41,891,507 23.07%
CNL Celamin Holdings 20 December 3,786,760 2.54%
RLG RooLife Group 20 December 15,238,095 5.50%
BUB Bubs Australia 20 December 38,401,340 7.46%
CPH Creso Pharma 20 December 2,053,043 1.20%
IDX Integral Diagnostics 24 December 776,720 0.04%
BIN Bingo Industries 24 December 18,538,985 2.84%
JDR Jadar Lithium 27 December 50,000,000 10.41%
EHH Eagle Health 27 December 200,000 0.06%
GMR Golden Rim Resources 30 December 3,951,323 0.20%
TGM Theta Gold Mines 31 December 46,645,701 10.68%
EOF Ecofibre 31 December 2,259,212 0.72%
EXL Elixinol Global 8 January 77,870,572 56.47%

The biggest one is from Elixinol Global (ASX:EXL).

Founder and former CEO Paul Benhaim has left the company, resigning from the role of chief innovation officer, which he took up after being replaced in the chiefdom-ship by the company’s lawyer, Stratos Karousos.

Karousos waited until October before unveiling some big changes, from getting out of Japan and cutting costs, to scaling the company’s ambitions back to hemp-derived CBD from a broader medical+hemp strategy.

Benhaim, who remains on the board, says he resigned to spend more time with his family and notes that other investors in Elixinol will no doubt be interested in what he plans to do with his 56 per cent of the company.

“I would like to recognise that the market may be interested in my intentions regarding my trust’s 54,623,008 ordinary shares held under mandatory escrow which will be released from ASX imposed escrow on 8 January 2020,” he said.

“I will not sell more than 10 per cent (5,462,300) of my holding for six months following release from escrow, and no more than 10 per cent of my holding in the following six months after that.”

At Janison Education Group (ASX:JAN), 23 per cent of the company is coming out of escrow as it hits its two year anniversary on the ASX, while Canterbury Resources (ASX:CBY) is celebrating its 12-month anniversary with the release of 29 per cent of the company.