Escrow Watch: Watch out for 570 million shares coming to the ASX
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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 who 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.
Two companies have given vague dates for their shares, Jupiter Mines (ASX:JMS) and Straker Translations (ASX:STG), with 299 million and 9.8 million shares due out respectively by the end of May — it all depends on when they release their financial statements, which need to hit the ASX by May 31.
The 25 million shares that Hydrix (ASX:HYD) are releasing, on May 20, have been held by Lion Tail, an associate of Hydrix’s founder that the company acquired in November 2017.
Lion Tail has already sold 17.6 million shares in Hydrix, and will sell the 25 million escrowed shares, representing a tick over 6 per cent of the company’s issued capital.
Hydrix says the sell-off will introduce a number of new institutional investors onto the register and enhance its current trading liquidity.
Hydrix chairman Gavin Coote said, “we look forward to welcoming a number of new institutional shareholders to our register, who have signalled their support and confidence in the Company’s growth prospects.”
Moho Resources (ASX:MOH), HeraMED (ASX:HMD) and SRG Global (ASX:SRG) are all releasing their shares in tranches.
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|
|JMS||Jupiter Mines||By 31-May||298,804,046|
|STG||Straker Translations||By 31-May||9,780,288|