Abundant says directors won’t sell when shares come out of escrow
AgTech Abundant Produce has suggested its five directors may not sell their shares after 21 million come out of escrow.
More than a quarter of the company’s shares are coming our of escrow on April 26. Abundant has 54.9 million shares on issue.
“Approximately 79 per cent of these [escrowed] shares are owned by Abundant Produce’s directors, who intend to retain their holdings,” the company said.
“The directors remain committed to the strategy and vision of Abundant produce and continue to drive the company forward for all investors.”
Escrow is a period when shareholders are not allowed to trade the stock they own.
For company directors this is usually for two years after a company lists. Major shareholders can also choose to put their shares into escrow for a period of time.
Abundant shares bounced hard last week after it said it was doing a deal with JatEnergy
The threat of a large volume of stock suddenly coming onto the market can depress a company’s share price.
This is the second announcement Abundant has made on the issue.
An Abundant spokeswoman told Stockhead there was a question following the first statement about whether the directors might sell, and the board wanted to confirm its support for the company with a follow up statement.
Abundant (ASX:ABT) breeds seeds for high quality vegetables and also produces plant-based skin care products.
Last week CEO Tony Crimmins, who also chairs Abundant Produce’s new China distribution partner JatEnergy (ASX:JAT), bought another $9000 of shares on market, giving him control over 7.2 million shares.
Director Stuart Richardson bought $19,250 worth on market, giving him 1.7 million shares which he controls through three companies, a super fund and a direct holding.
Abundant Produce shares were flat on Monday morning at 38.5c.