By James Langton
(May 10 – 09:10 ET) – Assante Corp. says that May 28, the first anniversary of its initial
public offering, will be marked by the release of 20% of the shares its original shareholders from escrow.
Initially Assante’s plan was to release 10% of the escrowed shares per year for four years, and in the fifth year the remaining escrowed shares will be released. But the firm says this year its board has decided to boost the release to 20% of the escrow, a move intended to enhance long-term shareholder value.
“The purpose of the escrow agreement is to demonstrate to the market the continuing commitment of these shareholders, a significant portion of whom are actively involved in the business of Assante,” says Assante. The firm will also be expanding its investor relations activities “to broaden its retail and institutional shareholder base”. It will also continue its normal course issuer bid.
“Collectively these initiatives demonstrate a strong commitment to create an environment that is more conducive for participation by a broader and larger base of institutional investors” says Martin Weinberg, chairman and CEO. “We believe that the increase in our public float will significantly enhance our ability to attract more institutional investors and create additional demand for our shares while still retaining a significant portion of the shares of our active shareholders in escrow”.
Assante says that the result of these share releases will push the number of freely tradable subordinate voting shares to approximately 18 million. When the firm went public just 7.9 million shares were released to the public.