United Atlantic Ventures sold over seven million shares of Trump Media & Technology Group Corp (NASDAQ:DJT) on Thursday, according to the company’s regulatory filing with U.S. Securities and Exchange Commission.
What Happened: UAV, an investment partnership of former “The Apprentice” contestants Andrew Litinsky and Wes Moss, now retains just 100 shares in the company. The sale was made possible after a lock-up agreement expired on Sep. 19.
UAV is the only known insider to have sold shares since the lock-up period ended. The company had previously owned a 5.4% stake in Trump Media, which operates the Truth Social app.
Litinsky and Moss initially co-founded Trump Media with former President Donald Trump in 2021 but later had legal disputes over their shares. Trump, who owns over 56% of Trump Media, stated on Sep. 13 that he has no plans to sell his shares.
According to SEC filings, UAV held 7.53 million shares of Trump Media as of Mar. 25. It was later awarded an additional 3.44 million shares “for no additional consideration based on the performance of our Common Stock,” per a Trump Media filing on Sep. 5.
Though the sale price wasn’t disclosed, DJT closed at $13.80 last Friday. Based on that closing price, Benzinga estimates UAV’s sale to be approximately $151.32 million.
Why It Matters: The sale of nearly 11 million shares by UAV comes at a critical time for Trump Media.
Trump could potentially cash out his shares while maintaining control of the company. Trump holds a significant stake of 114,750,000 shares, valued at $1.7 billion as of the lock-up expiration date.
Additionally, concerns about ethics and conflicts of interest have been raised ahead of the 2024 presidential election. Trump’s ownership of Trump Media could pose potential conflicts if he were to win the election, as watchdogs worry about who might buy his shares or how his ownership might influence the media landscape.
Meanwhile, political figures like Rep. Marjorie Taylor Greene (R-Ga.) have shown loyalty to Trump by retaining their investments in Trump Media. Greene recently disclosed her stock transactions, which included maintaining her stake in Trump Media while also investing in other companies.
Price Action: Trump Media & Technology Group Corp’s stock closed at $13.98 on Thursday, down 1.06% for the day. In after-hours trading, the stock declined further by 1.29%. Year to date, the stock has fallen by 19.89%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
