The fact is, they could have held them over in escrow but chose...

The fact is, they could have held them over in escrow but chose not to. There could be many reasons for selling a small %age of their holding - I don't hold anything against Directors/founders selling (if they buy it is a different matter, that is good news). They could be selling to manage their tax affairs, to raise money for rights issues, to have a nice Christmas - who knows?

However, the shares coming out of escrow on 1 Dec are a huge number of shares compared to daily turnover. While they exist as a potential sale the share price will remain depressed from normal; as you would expect. Even if they have an agreement to sell a large block the agreement would be based upon VWAP over a certain time period, so there is a motive for one of the parties to depress the share price and keep it down for a while.

You are kidding yourself if you think this won't have an effect. Wait a couple of weeks and see what happens. I called it on the day of the company notice and sold on that day; it has since fallen around 15% or so. I'll wait it out a few weeks or months until the selling has stopped. IMO, this still has a way to fall, maybe another 10-15%. If it fills the gap then that would be good, I think, and about the maximum fall that I would expect.