Montage Technology Co., Ltd. Lock-Up Agreement Ends July 22, 2025.

Montage Technology Co. Ltd. has certain A shares subject to a lock-up agreement ending on July 22, 2025. Major shareholders, including China Electronics Investment Holdings and Intel Capital Corporation, have committed to not transferring or entrusting shares to third parties or repurchasing by the company for 36 months after listing. If the company's stock price falls below the issuance price, the lock-up period may be extended. After the expiry of the lock-up period, shareholders must transfer shares in an amount not exceeding 25% of their holding annually.

Montage Technology Co., Ltd. has certain A shares subject to a lock-up agreement ending on July 22, 2025. This agreement, detailed in a press release dated July 10, 2019, outlines the restrictions on the transfer of these shares for a specified period [2].

The lock-up period, initially set to end on July 22, 2025, began on July 10, 2019, and spans 2204 days. During this time, major shareholders, including China Electronics Investment Holdings Co., Ltd., and Intel Capital Corporation, have committed not to transfer or entrust shares to third parties or repurchase them by the company for 36 months after listing [2].

The agreement also stipulates that if the company's stock price falls below the issuance price for 20 consecutive trading days within 6 months of listing, or if the price remains below the issuance price for 6 months after listing, the lock-up period will be automatically extended for another 6 months [2].

After the expiry of the lock-up period, shareholders are required to transfer shares in an amount not exceeding 25% of their holding annually. This restriction aims to stabilize the market and prevent a sudden influx of shares that could potentially depress the stock price [2].

The lock-up agreement and shareholder commitments are crucial for maintaining market stability and investor confidence. They provide a controlled environment for the shares to be gradually introduced into the market, helping to prevent a rapid and potentially destabilizing increase in supply.

References:
[1] Certain Ordinary Shares of Ctrl Group Limited are subject to a Lock-Up Agreement Ending on 21-JUL-2025. Retrieved from https://www.marketscreener.com/news/certain-ordinary-shares-of-ctrl-group-limited-are-subject-to-a-lock-up-agreement-ending-on-21-jul-20-ce7c5cdfdd8cf12d
[2] Certain A Shares of Montage Technology Co., Ltd. are subject to a Lock-Up Agreement Ending on 22-JUL-2025. Retrieved from https://www.marketscreener.com/news/certain-a-shares-of-montage-technology-co-ltd-are-subject-to-a-lock-up-agreement-ending-on-22-jul-ce7c5cdcdd88f62c