In particular, the IPO lockup agreement
gives insiders incentives to provide truthful earnings forecasts.
The lockup agreements
prevent each officer and director from selling any amount of their shares of NAEG stock for a period of 18 months.
Additionally, since lockup agreements
only allow insider selling prior to lockup expiration if the lead underwriters agree with such early release, a lockup may assist the lead underwriter in extracting additional compensation by either making markets for the shares of insiders' block transactions or underwriting seasoned equity offerings (SEOs).
The shares are subject to a two-year lockup agreement
and a two-year standstill agreement and are not available for any type of borrow or exchange.
Antofagasta has also entered into a lockup agreement
with all of Duluth's directors and officers and with Wallbridge Mining Company Limited who collectively own approximately 10.
The positive average reaction to the IPOs of the firms in our sample suggests that investors do not anticipate that the firm's top managers plan to liquidate their holdings, but an IPO undeniably provides controlling shareholders with an opportunity to sell their restricted shares after the lockup agreement
More than 70% of respondents surveyed offer lockup agreements
, with the most popular terms being 30, 60 and 90 days, though 29% provide lockups for as long as 365 days, depending on the client relationship.
company and a market leader in China's clean technology solutions in the wind tower industries, announced today that in conjunction with the Company's listing on the NASDAQ Stock Market, CleanTech's entire management team and insiders have voluntarily entered into 3 year share lockup agreements
, which prohibit them from selling any of their shares to the public markets for at least 3 years, through December 15, 2013.
Atrium also announced that it has entered into forbearance and lockup agreements
with requisite majorities of the holders of each tranche of Atrium's funded indebtedness.
As a result, the shares subject to lockup agreements
will become freely tradable in the public market beginning May 20, 2008, subject to certain extension as described in the prospectus for the initial public offering.
8 /PRNewswire-FirstCall/ -- Triple-S Management Corporation , the largest managed care company in Puerto Rico, today announced that it has converted seven million issued and outstanding Class A shares into Class B shares effective immediately, in conjunction with the expiration of the lockup agreements
signed by holders of Class A shares at the time of the Company's initial public offering.
Certain Senior Noteholders have entered into lockup agreements
(the "Lockup Agreements
") with Star.