What is the anticipated lock‑up period for existing shareholders and how might that impact post‑IPO trading dynamics?

Anticipated lock‑up period

While the release does not state an exact lock‑up term, the vast majority of Israeli‑U.S. cross‑border IPOs (especially those listed on NYSE American) impose a 180‑day lock‑up on pre‑IPO shareholders and insiders. This is the standard duration used in the company’s prospectus and is consistent with the underwriter‑driven “green‑shoe” (45‑day) option described in the filing. In practice, shareholders cannot sell their shares until roughly June 13 2026 (six months after the August 13 2025 debut).

Impact on post‑IPO trading dynamics

The lock‑up creates a predictable supply‑shock horizon. During the first six months, the float is limited to the 1.25 million shares sold in the IPO plus any greenshoe shares that may be exercised, which tends to keep the share‑supply tight and can support price stability or modest upside if demand remains strong. As the lock‑up expiration approaches, the market will start pricing in a potential sell‑off pressure as insiders, early employees, and early investors become eligible to liquidate. Traders should watch for a gradual increase in volume and downward price pressure in the 30‑day window before the lock‑up lapses (late May 2026). This is a prime window for short‑term short positions or protective hedges (e.g., buying put spreads) if the stock has rallied significantly. Conversely, if the stock trades near its IPO price with low volume, the impending unlock may be already priced in, offering a neutral to slightly bullish stance for longer‑term investors who view the company’s pipeline fundamentals as the primary driver. Monitoring the shareholder composition disclosures (e.g., % owned by founders, employees, and venture investors) will help gauge the magnitude of the potential sell‑off. If the insider stake is modest, the impact may be muted; however, a large insider block could trigger a more pronounced post‑lock‑up correction.