Escrow Watch: These ASX stocks are releasing escrowed shares this month
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Escrow Watch is Stockhead’s monthly recap of the ASX companies that are releasing shares currently in escrow over the coming weeks.
ASX shares in escrow are “locked away” so owners can’t sell them – until they’re released. This is intended to depict to potential investors that 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 are able to can be unsettling – particularly if shares have substantially moved on way or the other.
Click here for a more detail description of the ASX rules surrounding escrow and the releasing of shares and some examples.
One of the ASX’s newer BNPL stocks, Payright (ASX:PYR), is ready for an escrow release. It is releasing 2,414,922 million shares on May 21 and another 6,399,916 shares on May 25 – both 12 months from when those shares were issued.
While many of its larger peers have enjoyed big gains over the last couple of years, Payright has not – nearly halving since its debut.
Another relatively news ASX listee releasing shares from escrow this month is Cluey (ASX:CLU), which is a tutoring service – it is releasing a parcel of 4.2 million shares this coming Saturday.
This parcel represents just over 3.53 per cent of the company and also marks 12 months since those investors chipped into the company but is a small amount of the total shares under escrow arrangements (which totals over 33 million).
A handful of gold plays are on the list too with Mont Royal Resources (ASX:MRZ) releasing 4.6 million shares today, Manuka Resources (ASX:MKR) releasing 3 million shares this coming Wednesday (May 12) and Westar Resources (ASX:WSR) releasing just over 1 million shares also on May 12.
Topping the lot, private equity group TeamInvest (ASX:TIP) is scheduled to release over 24 million in ASX shares from escrow on May 24 – representing over 20 per cent of the company. This date marks two years since its IPO.