Escrow Watch: Which companies have shares coming out in the new financial year?
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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 at that point, 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 arrangements.
Minerals exploration company with a portfolio of gold and copper projects Alice Queen (ASX:AQX) will release 2.5 million fully paid ordinary shares from voluntary escrow today. The shares are already quoted on the ASX.
AQX’s focus is the +500,000oz ‘Horn Island’ gold project offshore Queensland. The company uncovered a +3.4km long geophysical anomaly called ‘Jehda 1’ which coincides with gold at surface. The first deep hole into Jedha was drilled late February.
The company’s share price has fallen 70% in the past month to 0.003 cents.
Advanced-stage potash exploration company Reward Minerals (ASX:RWD) will release 750,000 fully paid ordinary shares will be released from voluntary escrow on 2 July 2022.
The company’s flagship project is its 100% owned Lake Disappointment Sulphate of Potash (SOP) project, in the Little Sandy Desert of northwestern Western Australia. It is an area known to host one of the largest SOP deposits in the world.
RWD said release of the shares does not change issued capital of the company. The company’s share price has fallen 18% in the past month to 9 cents.
Gold and precious metal explorer and developer Mt Monger Resources (ASX:MTM) will release 1.25 million fully paid ordinary shares from escrow. The shares are currently unquoted, and the company will apply for their quotation within five business days after the end of the escrow period.
The company also advises that 8,022,500 fully paid ordinary shares remain subject to mandatory and voluntary escrow until July 15, 2023 which is 24 months after its listing date.
MTM’s share price has taken more than a 35% dive in the past month to 14 cents.
Flame retardant tech company Alexium International (ASX:AJX) will release 3,333,333 ordinary fully paid shares from escrow on July 6.
While historically focused on the bedding market, the plan is to branch out into the body armour, helmet and shoe markets. The company has not had a good month though, with recent market volatility and sell-offs in growth stocks. Its share price is down more than 26% in the past month to 0.022 cents.
Forrestania Resources (ASX:FRS) will release 1.8 million shares from escrow on July 9. The shares are currently unquoted, and the company will apply for their quotation within five business days after the end of the escrow period.
FRS has 19,962,500 fully paid ordinary shares still subject to mandatory and voluntary escrow.
FRS recently announced it’s approved and ready to go on a drilling program at the high priority ‘South Iron Cap East’ lithium prospect, part of the ‘Forrestania’ project in WA. Several other program of work (POW) applications to drill other prospects are pending.
The company’s share price has fallen 40% in the past month to 12 cents.
Gold explorer E79 Gold Mines (ASX:E79) will release 125,440 ordinary shares from escrow on July 12.
E79 has 683km2 of prospective ground in two proven gold producing greenstone belts in the Western Australian Goldfields. Its Laverton South Project is within the Eastern Goldfields Superterrane of the Archean Yilgarn Craton in the southern extensions of the Laverton Tectonic Zone.
E79’s Jungar Flats Project, in the North Murchison region, is 70km west of Meekatharra and 45km north-northeast of the 2.8Moz Big Bell gold deposit.
The company’s share price is down 23% in the past month to 12 cents.
Radiology and diagnostic imaging provider Integral Diagnostics (ASX:IDX) will release 549,804 fully paid ordinary shares from voluntary escrow on July 31.
IDX recently made a deal to buy Exact Radiology, which has clinics in Brisbane and South East Queensland. The acquisition comes with an upfront price tag of $37.5m in cash, on a cash and debt free basis – as well as an earn-out of up to $1.875m to be completed within FY22, subject to revenue performance targets being achieved.
The company’s share price has fallen 15% in the past month to $3.