Escrow Watch is Stockhead’s monthly recap of the ASX companies that are releasing shares currently in escrow (also known as restricted securities) over the coming weeks.

ASX shares in escrow are “locked away” and not listed on the bourse so owners can’t sell them – until they’re released.

This is intended to depict to would-be investors when raising capital that the management and previous investors are still backing the venture and aren’t raising capital just so they can “sell out”.

While there’s no guarantee holders of escrowed shares will sell on release, the mere fact that they will be able to is worth knowing – particularly if shares have substantially moved one way or the other.

Click here for a more detailed description of the ASX rules surrounding escrow and the releasing of shares and some examples.

Here’s a list of ASX companies releasing restricted securities in July 2021…

Code Company Date of Release Shares % of shares on issue
SZL Sezzle 30-Jul 93,975,244 47%
BEX BikeExchange 1-Jul 26,103,482 19.0%
SKY Sky Metals 1-Jul 58,251,287 23.6%
HLA Healthia 2-Jul 4,450,769 4.9%
SWP Swoop 3-Jul 475,280 <1%
ERW Errawarra Resources 4-Jul 250,000 <1%
JCS JCurve Solutions 4-Jul 486,539 <1%
IXC Invex Therapeutics Ltd 5-Jul 21,069,220 38.9%
PAM Pan Asia Metals 6-8 July 168,000 <1%
COD Coda Minerals Ltd 9-Jul 3,012,508 3.7%
QFE QuickFee Ltd 11-Jul 13,336,620 6.5%
CE1 Calima Energy 14-Jul 14,655,506 <1%
ECS ECS Botanics Holdings Ltd 22-Jul 227,061,430 35.7%
EPX EP&T Global Ltd 14 & 17 July 250,000 and 2,625,000 2.6%

 

The vast majority of companies are releasing shares in escrow are doing so this week and it all kicks off today.

Starting things off is NSW gold explorer Sky Metals (ASX:SKY) which is releasing over 58 million shares – 23.6 per cent of its shares on issue – today.

This is the second anniversary of its reinstatement to quotation after its recapitalisation, name change from Planet Gas and shift from tin to gold.

While shares are off their peak of 40 cents in May 2020 they are still above the 4 cent per share price this deal was concluded at.

Also releasing shares today is cycling outlet BikeExchange (ASX:BEX) which is releasing 26 million shares – worth 19 per cent of its shares on issue – on July 1.

Health clinic network operator Healthia (ASX:HLA) is releasing 4.45 million shares in escrow on 2 July. This package of shares was given 6 months ago as consideration for acquisitions.

James Spencely chaired telco Swoop Telecommunications (ASX:SWP) is also releasing shares over the weekend although only a small parcel of 475,280.

On Monday biotech Invex Therapeutics (ASX:IXC) is releasing 21 million shares, worth over a third of the total shares on issue on the 2nd anniversary of its listing.

This company is 50 per cent up from its IPO but is off high of $1.67 reached last year.

Earlier this month it got some feedback from the FDA this month on a proposed clinical trial for its Presendin hypertension treatment drug.

The FDA has recommended Invex to consider a more “clinically meaningful” effect when measuring a change in the patient’s vision as a primary endpoint for the trial.

QuickFee (ASX:QFE) is also releasing shares on the second anniversary of its IPO, which is July 11. The company, which will release 13.3 million shares in escrow (worth 6.5 per cent) is like Invex above its IPO price but off all time highs.

Another peculiar name is Coda Minerals (ASX:COD), which has been one of 2021’s exploration success stories.

Coda and its partner Torrens Mining (ASX:TRN) have surged ever since hitting 200m of “intense IOCG alteration” at the ‘Elizabeth Creek’ project in South Australia.

On July 9 it is releasing 3 million shares (worth 3.7 per cent of shares on issue) which is 12 months from when they were first issued.

And BNPL company Sezzle (ASX:SZL) is releasing 93 million in shares on the last day of the month – 2 years from when it first listed. Much of this is owned by co-founders Charlie Youakim and Paul Paradis.