Mustang, Brainchip and Droneshield shares are coming out of escrow in June
The flood is coming. Pic: A tsunami surge during a 2011 earthquake off the Pacific coast of Tōhoku, Japan.
Brainchip, Droneshield and Mustang Resources are all releasing large chunks of shares out of escrow this month.
Brainchip (ASX:BRN) is due to release the equivalent of 42 per cent of its issued shares — 403 million — from escrow on June 18.
These shares are owned by seven of the company’s major shareholders, who agreed to re-escrow them in October last year for six months.
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 stock lists. Major shareholders can also choose to put their shares into escrow for a period of time.
The threat of a large volume of stock suddenly coming onto the market can depress a company’s share price.
Brainchip’s chief technical officer Peter Van Der Made is the largest shareholder with 16.65 per cent of the company, while former chairman and CEO Robert Mitro owns 11.48 per cent.
Brainchip has been contacted for comment.
Droneshield (ASX:DRO) investors can expect 100 million shares, 45 million performance shares and 23.2 million unlisted options to appear on June 22.
That’s the equivalent of 64 per cent of its issued stock.
It says Long Hill Capital owns 55 per cent of the shares and says “it has no plans to exit its investment absent an outright sale of the company”.
Long Hill owns 36.11 per cent of the company.
The performance shares were handed out before the IPO and Droneshield says it hasn’t met the milestones yet for those to be issued, namely achieving a 30 day volume weighted average price over 30c and 20 individual installations of its technology before June 22 this year.
Mustang Resources (ASX:MUS) is releasing 30 million shares from escrow on June 6.