Escrow Watch: Half a billion shares will swamp the ASX in the next fortnight
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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.
And more than half a billion are hitting the ASX in the next two weeks.
Quantify Technologies (ASX:QFY) has the most being released, with 163 million, or 17 per cent of its issued total, due out on March 8.
eCargo (ASX:ECG), the company that paid former Prime Minister Kevin Rudd’s daughter Jessica $5 million for her Chinese e-commerce business, has 113 million shares, 18 per cent of its total, coming out on March 19.
Calix (ASX:CXL) has a whopping 44 per cent of its total, or 54 million shares, coming out of escrow on March 13, while Marquee Resources (ASX:MQR), Lithium Consolidated (ASX:LI3) and Wattle Health (ASX:WHA) are all releasing over 30 per cent of their share capital.
Another lithium play, Lithium Australia (ASX:LIT), has 7.1 million shares originally issued as part of its acquisition of German lithium and tin resource Sadisdorf last year being released on March 12, with two more tranches to come from that deal over the next two years.
ADX Energy (ASX:ADX) paid a consultant in shares, rather than advisory fees, and those 4.4 million shares will be released from escrow on March 16.
A third of the two million shares being released by YPB Group (ASX:YPB) on March 12 were held by a former employee “pursuant to an agreement to payout the balance of the employee’s employment contract by the issuance of shares”.
Here’s a list of ASX stocks that have signalled escrow releases in the next fortnight:
Scroll or swipe to full reveal table. Click headings to sort
|ASX code||Company||Date released||Escrowed shares||% of all shares|
|GSM||Golden State Mining||9-Mar||300,000||0.8%|
|LI3||Lithium Consolidated||by 28-Mar||31,490,000||35%|
|AHX||Apiam Animal Health||19-Mar||129,103||0.1%|
|MOH||Moho Resources||By 22-Mar||844,719||0.2%|