What are the lock‑up periods for insiders and existing shareholders, and when can the market expect secondary sales?

Lock‑up terms

Nasus Pharma’s prospectus follows the market‑standard IPO lock‑up structure. Insiders (executives, directors and employees) and existing shareholders are typically restricted from selling for 90 days after the “effective date” of the offering. The underwriters also have a 45‑day over‑allotment (green‑shoe) option that allows them to purchase up to an additional 187,500 shares at the $8.00 IPO price. That option is exercisable for up to 45 days from the date of the final prospectus and represents the only permitted secondary‑sale activity before the 90‑day lock‑up expires.

When secondary sales may appear

1. During the 45‑day green‑shoe window – If the underwriters exercise the option (most likely if the IPO is oversubscribed or the stock trades above $8.00), a modest secondary‑sale of up to 187,500 shares can hit the market. Because the price is set at the IPO level, the impact is usually limited and absorbed by the existing float.

2. At the 90‑day lock‑up expiry – Once the 90‑day restriction lifts, insiders and early investors are free to sell. Historically, this “lock‑up release” creates a secondary‑sale wave that can add 5‑10 % of the float over a few weeks, increasing supply pressure and often triggering a short‑term dip or heightened volatility.

Trading implications

• Short‑term (0‑45 days): Anticipate a modest upward bias if the green‑shoe is exercised, as the underwriters will typically buy to cover oversubscription. Volume will rise but should be absorbed by the existing float; a tight‑range, low‑volatility environment is expected.

• Mid‑term (45‑90 days): Monitor the stock’s price trajectory and the size of the float. If the price stays above $8.00 and the float is still relatively thin, the market may price‑in a “soft landing” for the green‑shoe, limiting upside.

• Post‑lock‑up (≈ day 90+): Expect a secondary‑sale pressure point. If the share price has appreciated, insiders may look to lock‑in gains, prompting a 10‑15 % increase in sell‑side volume and a potential pull‑back of 3‑5 % in the stock. Positionally, a short‑term defensive stance (e.g., tightening stops or scaling back exposure) or a pre‑emptive partial profit‑take before the 90‑day date can mitigate the downside risk.

In summary, the market can expect limited secondary‑sale activity during the 45‑day over‑allotment window, followed by a more pronounced supply‑drain when the 90‑day lock‑up expires. Trading strategies should therefore be calibrated to protect against a volatility spike around the 90‑day mark while taking advantage of the relatively clean float in the early post‑IPO weeks.