Soon we'll see the impact as 78m shares come out of escrow...........we saw Z1p SP fall when 42m shares came out of escrow recently and SP fell to low of 6.72............seems SZL SP has been primed well so far IMO
Sezzle boss waiting on $700 million windfallTom RichardsonMarkets reporter and commentator
The buy now, pay later sector is close to minting another billionaire as the meteoric rise of Sezzle means co-founder Charlie Youakim’s stake is now worth about $800 million.
Sezzle CEO Charlie Youakim and chief revenue officer Paul Paradis. Wayne Taylor
For now that wealth is largely on paper, because about $710 million of it is tied up in shares subject to an ASX-imposed escrow until the second anniversary of Sezzle’s listing on July 31.
From then, 78.8 million of the 88.3 million shares Youakim owns will become available to trade.
Market watchers wonder if the Minnesota-based Youakim will be tempted to take some chips off the table given his ASX rocket ship is up more than seven-fold since listing at $1.22 per share to $9 on Tuesday.
For his part, Youakim told us he could have sold any of the nearly 10 million shares not subject to escrow requirements over the past two years, but hasn’t, because Sezzle is “on a tremendous growth trajectory”.
Youakim’s co-founder,Paul Paradis,also has the entirety of his 10 million shareholding worth $90 million due to come out of escrow on July 31.
If, as suggested, Youakim doesn’t soon sell, it would make a refreshing change fora sector characterised by founders cashing out at a serious rate of knots.
At market leader Afterpay, whichlike Sezzle is targeting a Nasdaq listing, co-foundersNick MolnarandAnthony Eisensold their stakes down to 6.57 per cent each last August.
It’s possible the Nasdaq listing sees a primary issue and secondary sell-down by its founders.