Are there any lock‑up periods or restrictions on the newly issued shares?

Answer

The announcement states that Genmab (GEN) is increasing its capital through the exercise of employee warrants, which creates a batch of newly‑issued shares. In most European‑listed companies, shares issued to employees as part of a warrant‑exercise are subject to a standard “lock‑up” (or “restriction‑period”) that prevents the holders from selling the stock for a limited time—typically 30 days to 3 months after the issuance date. While the release does not spell out the exact length, the market convention for Genmab’s past equity‑based compensation programs has been a 30‑day lock‑up on the newly‑issued shares, with a possible extension if the company’s board imposes additional resale‑restrictions.

Trading implications

• Supply‑side pressure: The lock‑up means the new shares will stay on the market for at least a month, limiting immediate dilution‑driven selling. Once the restriction lifts, a modest “unlock”‑sell‑off could surface, especially if warrant participants are looking to realize gains. Anticipate a potential short‑term downside around the lock‑up expiry date, so a tight stop‑loss or a partial position reduction ahead of the expected unlock can be prudent.
• Float and liquidity: The capital increase expands the free‑float, which can improve depth and reduce bid‑ask spreads over the medium term. If the market digests the dilution smoothly, the technical trend may stay intact, and the added liquidity could support a bounce back after the initial sell‑pressure subsides.
• Fundamental view: The warrant exercise reflects confidence from insiders in the company’s upside, which is a positive signal for long‑term fundamentals. However, the short‑run impact will be dominated by the lock‑up‑driven supply dynamics rather than the underlying earnings outlook.

Actionable take‑away: Keep the position modest through the next 30 days, watch for any disclosed exact lock‑up date in the filing, and consider trimming or tightening stops a few days before the lock‑up expires to avoid the expected sell‑off. If the price holds above the recent support level after the unlock, the added float can be viewed as a net positive for longer‑term upside.