In November, nearly two dozen ASX companies are releasing nearly 270 million escrowed shares – a list that was set to include one company that’s lost approximately two-thirds of its value since its IPO two years ago.

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 committed to 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.

 

Here’s a list of ASX companies with shares coming out of escrow in November 2021…

Code Company Date of Release Shares released Shares on Issue
CPO Culpeo Minerals 12 and 30 Nov 1,069,352 2.59%
BMO Bastion Minerals 5 and 17 November 250,000 <1%
POL Polymetals Resources 6 and 12 November 336,111 <1%
FFT Future First Technologies 2-Nov 6,000,000 1.40%
DM1 Desert Metals 2-Nov 4,810,000 13.74%
K2F K2fly 3-Nov 5,633,803 4.08%
NRX Noronex 4-Nov 10,300,000 6.53%
PNM Pacific Nickel Mines 4-Nov 10,617,954 4.94%
TLX Telix Pharmaceuticals 5-Nov 20,947,181 7.35%
KFM Kingfisher Mining 5-Nov 800,000 2.39%
WMG Western Mines 6-Nov 4,125,000 13.03%
CAU Cronos Australia 7-Nov 80,125,000 62.23%
BPM BPM Minerals 10-Nov 2,250,000 6.00%
KNB Koonenberry Gold 11-Nov 567,860 <1%
MM1 Midas Minerals 11-Nov 200,000 <1%
NKL NickelX 12-Nov 1,500,000 2.80%
PGO Pacgold 12-Nov 1,792,000 5.53%
HDN HomeCo Daily Needs REIT 23-Nov 129,000,000 16.31%
PTG PropTech 24-Nov 50,455,824 61.28%
DGL DGL Group 24-Nov 4,900,000 1.88%
3MF 3D Metalforge 26-Nov 1,258,000 1.31%
CBR Carbon Revolution 29-Nov 10,184,039 5.20%
MTM Mt Monger Resources 30-Nov 427,500 1.54%

 

80 million shares were set to be released by medicinal cannabis stock Cronos Australia (ASX:CAU) on November 7.

While this stock is off its all-time lows, it has never traded above its 50 cent per share IPO price and its 17 cent share price is a whopping 66% loss compared to its listing price.

But things have looked up for the company in the last month, after it announced a merger with Queensland-based medicinal cannabis company, CDA Health, and recorded $1.1 million in sales in the September quarter.

And on Friday, the company got the majority of these shareholders to agree to another 12-month escrow so long as this deal was complete by the end of the year – otherwise they will be released immediately on New Years’ Eve.

 

Big releasers

More than a third of this month’s total – 129 million – is being released by HomeCo Daily Needs REIT (ASX:HDN),  a real estate investment trust run by Home Consortium (ASX:HMC) and specialising in shopping malls that are home to consumer staple retailers (such as grocers and chemists).

These shares, directly owned by HMC, will be released on November 23 at 4.15pm, which is the first anniversary since it listed.

Only a fortnight ago, it was announced HDN would be merging with fellow REIT Aventus (ASX:AVN). Although mergers and acquisitions are sometimes a permitted reason to break escrow arrangements early, it won’t be in this case, with the deal not expected to be complete until mid-February next year.

PropTech Group (ASX:PTG) is releasing 50 million of its shares on the first anniversary of its “re-listing”. This company was once known as Real Estate Investar Group but changed its name and had to re-apply to list on the ASX following several “proptech” acquisitions in the CRM space because it was a “significant change” to activities.

Several resources companies make up space on this month’s list.

Of note, two base metals explorers are releasing over 13% of their shares on issue – in Desert Metals (ASX:DM1) which listed late last year and Western Mines (ASX:WMG) which listed in July this year.

One of the ASX’s largest biotechs Telix Pharmaceuticals (ASX:TLX), is releasing nearly 21 million shares.

The shares in question belong to China Grand Pharmaceutical and Healthcare which bought into a commercial partnership with Telix a year ago and made an investment then worth $35 million.

These shares were issued at $1.69 but with Telix’s share price at nearly $6, these are now worth over $124 million.