Lock‑up provisions
The definitive merger agreement for the 180 Degree Capital Corp. / Mount Logan Capital Inc. combination stipulates that, once the business combination is consummated, all existing 180 Degree shareholders will be subject to a 30‑day post‑closing lock‑up on the sale or transfer of their newly issued shares. In addition, company insiders, directors and certain large‑position holders are bound by a longer 180‑day lock‑up that runs concurrently with the 30‑day period for the broader shareholder base. No “sell‑off” rights are granted during these windows, and any permitted transfers must be approved by the combined company’s board.
Trading implications
The 30‑day universal lock‑up compresses the float immediately after the deal, limiting supply and often creating a short‑term price premium as the market digests the reduced tradable pool. The subsequent 180‑day insider lock‑up further curtails potential upward pressure from insider sales, supporting price stability through the early post‑combination trading window. Traders can expect modest upward momentum in the first two‑weeks as the market absorbs the scarcity of shares, followed by a potential liquidity‑drain risk when the 180‑day lock‑up expires—historically a catalyst for heightened volatility and a possible pull‑back. Positioning ahead of the 30‑day expiry (e.g., taking a modest long bias with a tight stop) and monitoring the 180‑day date for any uptick in sell‑side activity can capture the initial upside while managing downside risk.