Escrow Watch: The selling gun is about to sound on these small caps’ escrowed shares
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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 directors 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.
This week’s tally of companies releasing shares (five) and escrowed shares (86 million) may disappoint.
The vast majority of shares (82 million of them) are two companies, but in both circumstances it is equal to nearly 30 per cent of shares on issue.
The first of these companies is American Pacific Borate and Lithium (ASX: ABR). Two years on from listing, nearly 59 million shares will be released from escrow tomorrow.
After listing at 20 cents it went as high as 52 cents in October 2017 before falling as low as 12 cents in November 2018. But now it sits at 24 cents – a 20 per cent gain and from tomorrow, escrowed shareholders will be free to cash our their returns.
Canterbury Resources (ASX: CBY) has seen a small decline of 4 per cent since it listed in March. While it is not a substantial loss, shareholders will be disappointed considering the vast majority of 2019’s IPOs have gained.
24 million CBY shares will be released from escrow tomorrow, worth 29.5 per cent of its market cap. Shareholders not wanting to hang on will be able to sell.
Other stocks releasing escrowed shares include Exopharm (ASX: EX1), Rafaella Resources (ASX: RFR) and NeuroScientific Biopharmaceuticals (ASX: NSB). Of these stocks the latter will be most interesting.
Only a few weeks ago the Alzheimers fighter tripled in a day from 14 cents to 35 cents. The catalyst? A successful clinical trial.
It has since retreated to 27 cents, still a gain from its IPO but escrowed shareholders only have a week before they are allowed to sell.
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
|Code||Company||Date Released||Escrowed Shares||% of shares on issue|
|ABR||American Pacific Borate & Lithum||18-July||58,680,000||28.2%|
|CBY||Canterbury Resources Ltd||17-July||24,068,193||29.5%|
|RFR||Rafaella Resources Ltd||19-July||800,000||2.1%|