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by bix66 hours ago |
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upvoteby cik6 hours ago|
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Generally this is how liquidity works. Their employees will have a six or twelve month lock up (six being most common).

Investors in certrtain rounds (or sizes) tend to have no lockup, whereas later stages have a six month. Alternatively, I've reviewed agreements where the lockup is based on minimum market cap, but I've only seen that a couple of times.

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upvoteby bix64 hours ago|
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Ok everyone saying this is how it works but where’s the proof? SpaceX has a 7 day lockup for some people which is abnormal. So clearly the way it’s done isn’t in fact how it’s always done.
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upvoteby bilekas6 hours ago|
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This is just a general practice that always happens when paying in stock. It's to prevent a massive dump the next day which would tank the share price 'artificially'. Again, rich people's rules.
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upvoteby bix64 hours ago|
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Ok everyone saying this is how it works but where’s the proof? SpaceX has a 7 day lockup for some people which is abnormal. So clearly the way it’s done isn’t in fact how it’s always done.
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upvoteby bilekas4 hours ago|
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https://www.sec.gov/reports/rule-144-selling-restricted-cont...

> Holding Period. Before you may sell any restricted securities in the marketplace, you must hold them for a certain period of time. If the company that issued the securities is a “reporting company” in that it is subject to the reporting requirements of the Securities Exchange Act of 1934, then you must hold the securities for at least six months

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upvoteby bix63 hours ago|
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Are the securities restricted though? I don’t think these would be?
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upvoteby bilekas3 hours ago|
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Almost guaranteed to be. The only other way would be to have issued them during the transaction with the Sec. There was no mention of that. 60billion of issued shares would have been mentioned. It's non trivial amount.
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upvoteby kyleee3 hours ago|
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What’s the lockup period in this case?
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upvoteby bilekas3 hours ago|
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Um, I honestly don't know for sure, if I'm not mistaken SpaceX has some weird staggered release schedule for employees and early investors, I guess based on their stock dates.
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upvoteby bilekas4 hours ago|
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> SpaceX has a 7 day lockup for some people which is abnormal

You might be referring to staff members who have shares ? Their shares are not restricted securities as far as I know, but their internal company policy might affect those, but I'm not 100% certain on that.

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upvoteby bix63 hours ago|
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There are many tranches here. Some friends and family got to buy day one IPO with no restrictions. Then some employees get a rolling release starting June 30.
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upvoteby bilekas2 hours ago|
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That's interesting actually, and good to hear. I fully believe those employees deserve their full share.
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upvoteby UqWBcuFx6NV4r6 hours ago|
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It can be inferred because it’s how things tend to work.
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upvoteby bix64 hours ago|
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Ok everyone saying this is how it works but where’s the proof? SpaceX has a 7 day lockup for some people which is abnormal. So clearly the way it’s done isn’t in fact how it’s always done.
reply