Shares in public companies, especially those held by insiders of recently-listed companies, are often subject to lock-up periods or escrow schedules. Having a broad overview of those schedules, even if incomplete, may be helpful in understanding the circulating supply of shares in a given company, and how this may be changed by an upcoming unlock.

The information below is indicative only, and is collected primarily from company filings and communications. If you have an amendment, please submit it via the form at the footer of the page.

Contents

Champignon Brands

*300,000 shares and company warrants were released from escrow upon the company listing on the CSE. This is outside the 2,700,001 shares and 2,700,000 warrants that are still due to be released pursuant to the above schedule.

“As consideration, the Company issued 75,674,000 common shares (“Consideration Shares”). 17,122,000 of the Consideration shares will be subject to a customary hold period under securities legislation and the remaining Consideration Shares will be subject to voluntary resale restrictions and released in five equal tranches every 3 months with the first release commencing thirty days following closing. Additionally, the Company issued 2,100,000 share purchase warrants in exchange for outstanding AltMed share purchase warrants. The Company issued 2,000,000 finder common shares in connection with the acquisition.”

Numinus Wellness

New Wave Holdings

“Escrow releases of Resulting Issuer Shares will be scheduled at periods specified in NP 46-201 for emerging issuers, that is, 10% will be released upon the Listing Date followed by six subsequent releases of 15% each, every six months thereafter for 36 months. The form of the escrow agreement must be as provided in NP 46-201. This escrow release schedule is subject to acceleration in accordance with NP 46-201.”

“aggregate of 10,500,000 Resulting Issuer Shares held by former New Wave Esports Shareholders will be subject to the same terms as the Escrow Agreement.”

Red Light Holland

Upon listing, zero shares were in escrow. However, upon listing on the CSE, securities held by company ‘principles’ were held in escrow and will be released pursuant to the schedule below. Their definition of company ‘principle: 

“(i) directors and senior officers of the Resulting Issuer or any material operating subsidiary, (ii) Promoters of the Resulting Issuer during the two (2) years preceding the Amalgamations, (iii) holders of more than 10% of the outstanding Resulting Issuer Shares who also have a right to elect or appoint a director or senior officer of the Resulting Issuer or a material operating subsidiary, (iv) holders of more than 20% of the outstanding Resulting Issuer Shares, (v) companies, trusts, partnerships or other entities held more than 50% by one or more of the foregoing, and (vi) spouses or other relatives that live at the same address as any of the foregoing.”

Empower Clinics

“Issuance of 22,058,823 common shares of the Company (each a “Share”) at a deemed price of US$0.136 ($0.183) per Share, representing the average daily closing price of the Shares on the Canadian Securities Exchange for the 10-day trading period ended April 26, 2019. Pursuant to an escrow agreement dated April 30,2019, 14,705,882 of the Shares will be held in escrow by Odyssey Trust Company, and will vest in quarterly installments over 36 months from the date of the Closing”

Aggregate of shares issued to both CIO (consulting fees) and the company CEO (as part of employment contract). 5,000,000 shares issued to the CEO were placed in escrow, 400,000 shares issued to CIO were placed in escrow. They are both subject to the same escrow terms.

Hollister Biosciences

“Shares issued to Hollister members in exchange for all issued and outstanding Hollister membership interests pursuant to securities exchange agreement with Weldon. 60,000,000 pre-consolidation shares were issued with 8,580,000 pre-consolidation shares cancelled, leaving 51,420,000 pre-consolidation shares outstanding as part of transaction. The 34,280,000 shares in the table above accounts for a 1.5:1 share consolidation. This is part of a voluntary lockup.”

Venom Extracts acquisition – 70,390,672 payment shares issued, of which 63,351,605 (90%) are subject to the following lockup period:

b) 29,610,054 earn-out shares were also issued, payable as follows:

“The Earn-Out Shares will be issued on the earlier of (i) December 31, 2021, or (ii) when and if the following milestones have been met:

  • 19,740,036 Earn-Out Shares will be issued when revenue of Venom Extracts reaches CDN$30,000,000 (calculated in accordance with IFRS from January 1, 2020); and
  • An additional 9,870,018 Earn-Out Shares will be issued when revenue of Venom Extracts reaches CDN$40,000,000 (calculated in accordance with IFRS from January 1, 2020)” 
6,000,000 shares issued to finders in relation to the transaction are due to be released from hold period on 25th July 2020.

Alphamind acquisition – 4,200,000 payment shares issued which are subject to the following lockup:

b) 1,800,000 earn-out shares were also issued, payable as follows
“The Earn-Out Shares will be issued on the earlier of (i) December 31, 2020, or (ii) upon AlphaMind’s first production run or its first sales of product.”

Codebase Ventures

MindMed

Securities deposited into escrow in relation to MindMed – Broadway Gold RTO. The description of escrow terms is very unclear in the three sources I have listed, although I cannot find a table of their own. The above subordinate shares are all subject to the above escrow schedule, however the multiple voting shares issued are subject to a voluntary lock-up agreement (or I have taken it to mean this) which takes priority over original escrow arrangement minus the 25% released on the listing date (3rd March 2020).  

64,131,041 subordinate voting shares were subject to the above lock-up agreement, of which 26,621,041 remain locked up to be released on 3rd September 2020. 

Cross-referencing 3 documents (attached) regarding the RTO transaction and concurrent brokered private placement shows that Savant Addiction Medicine is the only holder of multiple voting shares (550,000) and has led me to believe that 25% of those were released from escrow upon listing (3rd March 2020), with the 412,500 remaining multiple voting shares subject to the 24-month lock-up agreement above. 

 Important Note

Due to the nature of this emergent industry, which includes a high number of reverse takeovers and fundraising routes, the information contained on this page should be treated as indicative estimates only. The information has been collected by Psilocybin Alpha on a best-efforts basis using company filings, corporate communications, and in some cases verification through discussion with Company officers. As with all of our information and resources, it should not be used to arrive at investment decisions. Some dates may have been rounded and/or approximated.

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