DigitalGlobe’s Lock-Up Extended
Oct 22, 2009, post by Adam Wątróbski


DigitalGlobe Inc. (NYSE: DGI) in Longmont stated lock-up agreements entered into with its underwriters in conjunction with its initial public offering will be extended 18 days beyond the company’s Nov. 9 earnings release.


The lock-up period was due to expire on Nov. 9, but the company’s underwriting agreement delivered for an automatic extension, depending on the timing of DigitalGlobe’s quarterly earnings press release. The first sales of shares restricted by the underwriter’s lock-up may take place on Friday, Nov. 27.


Underwriters often will have company executives, managers, employees and venture capitalists sign lock-up agreements to ensure an element of stability in the stock’s price in the first few months of trading. When lock-ups expire, restricted people are permitted to sell their stock, which sometimes (if these insiders are looking to sell their stock) results in a drastic drop in share price due to the huge increase in supply of stock.


DigitalGlobe is a provider of commercial, high-resolution images taken from a constellation of satellites for defense and intelligence, government and commercial clients.