TPCO Holding Corp. (NEO: GRAM.U) (OTCQX:GRAMF), also known as The Parent Company, announced that company insiders have voluntarily extended their lockup agreements for approximately 35% of the company's common shares, which would have ended on Friday.
Lockup agreements are set after an IPO and prohibit company insiders, like employees, their friends and family and large shareholders from selling their shares for a set period of time after the company goes public.
When lockup agreements are released, that can lead to volatility in the company’s stock price as large amounts of shares can enter the market all at once.
Insiders at The Parent Company, including the entire board of directors, the CEO and CFO have agreed to extend the lockup period of approximately 34 million shares of common stock for another twelve months, until January 28, 2023. The event can be viewed as a vote of confidence for the company’s performance across the upcoming year.
"This voluntary extension demonstrates our Board of Directors and leadership team's confidence in the long-term potential of our business," said Troy Datcher, CEO of the vertically-integrated California cannabis company.
Insiders are however allowed to sell their stock in the case of the following events:
- A company with U.S. cannabis operations is permitted to be listed on any senior US exchange including the NYSE or Nasdaq.
- The trading price of The Parent Company's common shares on the NEO Exchange Inc., or any other exchange, exceeds $10 at the close of any trading day.
- They cease to be a director, officer or employee of the company.
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