The members of the Executive Committee of US-listed super app Grab Holdings Ltd including Co-Founders Anthony Tan and Hooi Ling Tan, have extended the term of the lock-up period of their shares in the company for a year.
Other members who have entered into a deed in favor to extend the term of the lock-up with respect to their respective shares include Grab President Ming Maa, Chief Financial Officer Peter Oey, Chief People Officer Chin Yin Ong and Chief Operating Officer Alex Hungate, a regulatory filing on Monday (March 14) showed.
The lock-up was initially scheduled to expire on May 30, 2022.
“In the case of Mr. Hungate, who joined Grab after the execution of the initial lock-up, the new lock-up will apply to any Grab shares that vest prior to the new extension date,” Grab said in the filing to the US Securities and Exchange Commission.
The extended lock-up is on substantially the same terms as the lock-up that was due to expire on May 30, 2022, the company added.
Grab said it believes that “this extension is a reflection of the continued, collective belief by the members of the Executive Committee in the business fundamentals and prospects of Grab”.
The extension also follows a sharp decline in Grab’s share price after the company reported a wider net loss earlier in the month. Its share price has declined more than 45 percent since the beginning of March.
The Singapore-headquartered super app announced on March 3 that it posted a loss of $1.1 billion in the fourth quarter of 2021. Its revenue tumbled 44 percent on-year to $122 million.
Grab said in a statement then the loss included $311 million non-cash interest expense related to Grab’s convertible redeemable preference shares that ceased upon grab’s public listing and $328 million related to one-time public listing related expenses, of which $290 million is non-cash.
It explained that the drop in revenue was due to the company “preemptively invested to grow driver supply to support strong recovery in mobility demand”. Consumer incentives for mobility and deliveries also increased as Grab “invested” in its category share and Monthly Transacting Users (MTU) growth.
Singapore local media The Straits Times reported last week that Grab could face class action lawsuits, with several US law firms calling for shareholders to contact them to investigate claims on their behalf. The mounting of such investigations comes after its share price declined sharply following the announcement of its forth quarter financial results.
Grab’s share price has fallen more than 58 percent since the beginning of the year.
Grab reports $1.1B loss in 4Q as revenue falls on heavy incentive spending