Zymergen (NASDAQ: ZY) stock sank on Tuesday, falling 12.6% as of 1 p.m. EDT as the stock's lock-up period expired. Notably, Zymergen shares had gained some ground in the past week but with today's drop, shares of the "biofacturing" start-up have cracked 20% in one month and 69% in the past three months.
Zymergen shares listed in April via an initial public offering (IPO), with shares rocketing on debut day based on the tall claims made by the company.
A company that goes public via an IPO typically requires insiders to hold their shares for a certain period called the lock-up period. As per its regulatory filings, Zymergen filed its prospectus for an IPO with the Securities and Exchange Commission (SEC) on March 23, 2021, and prohibited anyone holding such restricted securities from selling their shares before 181 days from the date of filing.
Source Fool.com