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Source on the lockup for Cursor insiders?
by bix6 4mo ago
Source on the lockup for Cursor insiders?
- UqWBcuFx6NV4r 4mo agoIt can be inferred because it’s how things tend to work.
- bix6 4mo agoOk everyone saying this is how it works but where’s the proof? SpaceX has a 7 day lockup for some people which is abnormal. So clearly the way it’s done isn’t in fact how it’s always done.
- bilekas 4mo agoThis is just a general practice that always happens when paying in stock. It's to prevent a massive dump the next day which would tank the share price 'artificially'. Again, rich people's rules.
- bix6 4mo agoOk everyone saying this is how it works but where’s the proof? SpaceX has a 7 day lockup for some people which is abnormal. So clearly the way it’s done isn’t in fact how it’s always done.
- bilekas 4mo agohttps://www.sec.gov/reports/rule-144-selling-restricted-control-securities https://www.sec.gov/reports/rule-144-selling-restricted-cont... > Holding Period. Before you may sell any restricted securities in the marketplace, you must hold them for a certain period of time. If the company that issued the securities is a “reporting company” in that it is subject to the reporting requirements of the Securities Exchange Act of 1934, then you must hold the securities for at least six months
- kyleee 4mo agoWhat’s the lockup period in this case?
- bilekas 4mo agoUm, I honestly don't know for sure, if I'm not mistaken SpaceX has some weird staggered release schedule for employees and early investors, I guess based on their stock dates.
- bix6 4mo agoAre the securities restricted though? I don’t think these would be?
- bilekas 4mo agoAlmost guaranteed to be. The only other way would be to have issued them during the transaction with the Sec. There was no mention of that. 60billion of issued shares would have been mentioned. It's non trivial amount.
- bilekas 4mo ago> SpaceX has a 7 day lockup for some people which is abnormal You might be referring to staff members who have shares ? Their shares are not restricted securities as far as I know, but their internal company policy might affect those, but I'm not 100% certain on that.
- cik 4mo agoGenerally this is how liquidity works. Their employees will have a six or twelve month lock up (six being most common). Investors in certrtain rounds (or sizes) tend to have no lockup, whereas later stages have a six month. Alternatively, I've reviewed agreements where the lockup is based on minimum market cap, but I've only seen that a couple of times.
- bix6 4mo agoOk everyone saying this is how it works but where’s the proof? SpaceX has a 7 day lockup for some people which is abnormal. So clearly the way it’s done isn’t in fact how it’s always done.