Energem Corp. (NASDAQ:ENCP) announced in an 8-K this morning that it has shortened the lock-up for the SPAC’s sponsor while extending it for other parties in the Graphjet combination.

Energem’s sponsor originally was to be locked for one year following close with an early release available only if the combined company traded at or above $12 for 20 of 30 trading days at least 150 days out from close, while company shareholders were all beholden to a six-month lock-up.

Instead, 2,427,908 of the sponsor’s promote shares (84%) will be released from trading restrictions six-months after close, but may be released earlier at a $18 price hurdle under the same conditions. The remaining 447,092 promote shares will be locked for nine months.

Meanwhile, Graphjet investor Suria Sukses Engineering’s 27,600,000 shares and 528,075 shares held by other insiders are to follow the same schedule as the bulk of the promote. Another 2,760,000 held by Graphjet advisor Arc Group and the 107,640,000 shares representing the bulk of the equity compensation to company shareholders will now be locked for nine months.

These will only be released early if the company undergoes a change of control or other major equity reorganization.

The parties originally announced their $1.5 billion combination in August 2022. Kuala Lumpur-based Graphjet processes palm kernel shells into graphene and graphite materials for EV batteries, medical devices and home appliances.

In January, Energem announced it has agreed to a standby equity agreement with Yorkville Advisors Global for it to purchase up to $200 million in newly-issued Graphjet shares priced at either 96% of their one-day VWAP or 97% of the three-day VWAP.