Are Ex-employees subject to lockup after an IPO? If I’ve already accepted it,can I revoke the lockup agreement
Etta asks:
My former company went IPO 2 weeks back. I no longer work there but I had received lockup agreement forms that I signed. Now I see that ex-employees are not needed to sign it. I need some cash right away so I’d like to sell my stock. What are my options?
My former company went IPO 2 weeks back. I no longer work there but I had received lockup agreement forms that I signed. Now I see that ex-employees are not needed to sign it. I need some cash right away so I’d like to sell my stock. What are my options?
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Ex employees will be jailed after the IPO?. It’s “lockout” I think you’re asking and the answer is I doubt it.
Don’t take a chance. You need competent legal advice. Getting in trouble with the SEC is not the way to go.
Here are some options:
1. If you are still on speaking terms with people at the company, call up the corporate general counsel and ask for an opinion.
2. Call your stock brokerage and ask them if they have someone who could review your lockup agreement and render an opinion.
3. Contact another local stock brokerage with the same question. They may be willing to do some work for you in return for your business.
4. Find a securities attorney. This could get expensive, which is why it is #4 on my list. Try to get an initial interview in which the attorney would quote you a fixed cost for an opinion on the agreement.
Best of success.