I thought I would try to clear up some confusion surrounding ESTC’s lockup expiration. Here is what ESTC included in their latest earnings release:
Lock-Up Release Date and Extension
Pursuant to the lock-up agreements executed in connection with the Company’s initial public offering, provided the closing price of Elastic’s ordinary shares on March 4, 2019 is at least 33% greater than the IPO price of Elastic’s ordinary shares, 25% of the shares subject to the lock-up agreements will be released from lock-up, and such shares will become eligible for immediate sale in the public market, at the open of trading on March 6, 2019, subject to trading limitations on shares held by affiliates of Elastic and applicable securities laws, restrictions under Elastic’s insider trading policy and continued vesting of any unvested equity awards as of such date.
The lock-up restrictions with respect to all remaining shares are scheduled to expire after the close of the market on April 2, 2019. However, since the Company will be in its standard quarterly trading blackout period on that date, insiders will be restricted from selling shares until the start of the third trading day following the end of this blackout period. The Company expects to announce its earnings results for its fiscal year ending April 30, 2019 in early June 2019.
Here is what that means:
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ESTC had a lock-up expiration for 25% of its shares on March 6. That is said and done.
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The remaining shares were supposed to unlock on April 2, but that date falls within ESTC’s “black-out period” since it is within 30 days of the end of the quarter (which ends April 30). That black-out period won’t be lifted until AFTER ESTC releases its next quarterly results, which ESTC says will happen in June. Thus, ESTC’s remaining, larger chunk of shares won’t unlock until after they report their quarterly earnings in early June.
Summary: The magic date for ESTC’s next lock-up expiration is in June on the 3rd day AFTER their next earnings release. It is not April 2.
