In a regulatory filing, Lyft said on Wednesday that pursuant to the lock-up agreements with the underwriters, if (i) at least 120 days have elapsed since March 28, 2019, (ii) the company has publicly released earnings results for the quarterly period during which the IPO occurred and (iii) such lock-up period
is scheduled to end during or within five trading days prior to a broadly applicable and regularly scheduled period during which trading in the company's securities would not be permitted under its insider trading policy, such lock-up period
will end ten trading days prior to the commencement of such blackout period.
As part of the changes, which are yet to be officially announced, the lock-up period
for funds under China's Qualified Foreign Institutional Investor (QFII) program will be removed, allowing international investors to withdraw their money on a daily basis.
The specific provision in the IPO lock-up agreements being waived is the lock-up extension provision that may extend, upon the occurrence of certain events, the 180-day IPO lock-up period
for an additional period of up to 34 days.
Starting in just a few months, they will be free to sell their shares as the so-called lock-up period
2005-48 (IRB 2005-32, 8/8/05) holds that an employee (E) who exercises a nonstatutory option before the end of a six-month "lock-up period
" must recognize income from that exercise even if E's sale of the stock is restricted under the insider trading rules.
A agreed not to sell, otherwise dispose of or hedge any S common shares, options, warrants or convertible securities from May 5-November 2 of year 2 (lock-up period
), as required under the underwriting agreement (and other agreements).
Technology companies showed greater volatility around the expiration of their lock-up periods
than did life sciences companies.