• WA1 Resources due to release shares from escrow as its share price soars after hitting niobium-rare earths paydirt
  • Resource companies including lithium plays Pathfinder and Lithium Plus Minerals will release shares
  • BNPL stock Zip Co will release shares from escrow issued as part of its acquisition of Twisto Payments

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. Here are companies due to release shares.

November 3 – Equity Story Group, Spenda & AD1 Holdings

Equity Story Group (ASX:EQS) will release 5,199,800 fully paid ordinary shares today, 12 months from their date of issue.

A further 1 million shares will be released from escrow on November 8. The shares were issued as part of a pre-IPO capital raise and the escrow arrangements are in connection with the initial public offering of Equity Story in May 2022.

The financial research company recently released its quarterly update and has been focusing on revenue generation from subscriptions to its core Equity Story media service including daily podcasts, market commentary, trading strategies and stock analysis.

B2B payment and lending solution Spenda (ASX: SPX) will release 16,935,483 ordinary shares from escrow. The shares were issued on November 3, 2021, as part of the Greenshoots Technology acquisition.

Tech company AD1 Holdings (ASX: AD1) will release 16,178,895 fully paid ordinary shares from voluntary escrow.  The shares were previously issued as partial consideration for the acquisition of Art of Mentoring Pty Ltd.

AD1 recently released its Q1 FY23 update, including revenue for the quarter up 11% compared to Q1 FY22.  The company secured several significant contract wins during the quarter,  accelerating its growth in Australia and North America.

The EQS, SPX, AD1 share price today:


November 4 – Lithium plays to release shares

Critical and battery minerals explorer Pathfinder (ASX:PF1) will release shares from escrow including:

  • 4,847,153 Ordinary fully paid shares
  • 2,295,660 Class A performance shares
  • 2,295,661 Class B performance shares

Stockhead’s Lithium Queen Jesssica Cummins reported last week Pathfinder has entered into binding agreements to acquire a portfolio of critical mineral exploration assets.

PF1 says it will explore for critical battery and semiconductor minerals across the Falcon Lake Lithium Project in Canada, Tidlili Copper Project in Morocco and the Austrian Bleiberg Zinc-Lead-Germanium Project.

Lithium Plus Minerals (ASX: LPM) will release 180,000 fully paid ordinary shares from mandatory escrow.

LPM said it will apply for quotation of the escrowed shares upon their date of release and there will be no change to the issued capital in the company as a result.

Phase 2 diamond drilling has recommenced at LPM’s Lei Prospect to follow up its successful Phase 1 diamond and RC program.

The expanded Phase 2 program consists of at least five diamond holes for approximately 1,800m of diamond drilling.

The PF1 & LPM share price today


November 5 & 30 – One Click to release shares

WA-based financial tech platform One Click Group (ASX:1CG) will release 7,070,970 fully paid ordinary shares from imposed escrow.

The shares were issued as part of the consideration paid by 1CG to the vendors of Mobile Business Devices.

Of the shares to be released from ASX imposed escrow, 1,833,214 have been agreed to remain subject to voluntary escrow until March 27, 2023 in line with existing voluntarily escrowed shares.

The remaining 5,237,756 shares will become freely tradeable from November 5, 2022. A further 14,141,942 fully paid ordinary shares will be released on November 30.

1CG still has millions of shares subject to escrow to be released at various dates through until September 2024.

November 8 – Integral Diagnostics & Vulcan Energy to release shares

Radiology and diagnostic imaging provider Integral Diagnostics (ASX:IDX) will release 3,257,577 fully paid ordinary shares currently held under voluntary escrow.

The company said the release of these shares does not change the issued capital of the company.

IDX recently announced it was terminating its agreement to buy Exact Radiology, which has clinics in Brisbane and South East Queensland.

Vulcan Energy (ASX:VUL) will release 13,122 fully paid ordinary shares from voluntary escrow.

As Stockhead’s Reuben Adams reported VUL has announced it’s expanding its geothermal energy-lithium brines business from Germany into neighbouring France and specifically Alsace, which is a natural extension of the Upper Rhine Valley Field.

In March, VUL tested a bulk (10,000 litres) brine sample from the French side of the border, which returned a high grade of 214 mg/L Li and low impurities.

November 9 – Firetail to release more than 3 million shares from escrow

Australian battery minerals explorer Firetail Resources (ASX:FTL) will release 3,217,500 ordinary fully paid shares from escrow. The company will apply to the ASX for quotation of the shares when released.

FTL listed in April with a suite of lithium, rubidium, nickel, copper, cobalt and gold projects in Western Australia and Queensland.


November 10 – Rising star WA1 Resouces & Duke Resources to release shares

Headline-grabbing WA1 Resources (ASX:WA1) has announced it will release  1,553,329 fully paid ordinary shares from escrow.  WA1 said it will apply for quotation of these securities and there will be no change to the company’s issued capital.

The former $3m market cap has been talk of the town after hitting niobium-rare earths paydirt in its first hole at the P2 target, part of the West Arunta project in remote WA.

The WA1 share price is up an astounding 1,321% since this announcement was released Wednesday last week.

Copper, gold and silver explorer Duke Exploration (ASX:DEX) will release 15,208,475 fully paid ordinary shares from mandated escrow. The company said it will apply for quotation of the shares and there will be no remaining unquoted shares under mandated escrow.

Following the quotation of these shares, there will be 105,419,627 quoted fully paid ordinary shares on issue. Duke also advises that 1,497,097 unlisted options exercisable at 50 cents will expire on November 10.


The WA1 and DEX price today


November 12 – BNPL play Zip Co

BNPL stock Zip Co (ASX:ZIP) will release 1,777,437 ordinary shares, which were issued on November 12, 2021 in connection with the company’s acquisition of Twisto Payments.

The shares are currently quoted on the ASX.  ZIP recently reported strong numbers for Q1 FY23, including a 19% increase in group quarterly revenue to $163.2m, compared to pcp. Transaction volume for the quarter was $2.2b, up 15% YoY.

November 25 – Caspin to release shares & options

Caspin Resources (ASX:CPN) has announced it is releasing the following shares from escrow.

  • 4,920,000 Fully Paid Ordinary Shares
  • 2,500,000 Unlisted Options at an exercise price of 30 cents, expiring on November 19, 2025
  • 2,000,000 Unlisted Options at an exercise price of 30 cents, expiring on November 25, 2025
  • 801,124 Performance Rights

CPN will apply for quotation of the shares when listed.

The company recently announced it had uncovered significant rhodium in multiple re-assayed holes at the new Serradella discovery, part of the Yarawindah Brook project near Perth, WA.

The CPN share price is trading at 62 cents.

The ZIP & CPN share price today