Shocking Mass Sell-off: Trump Media Shareholder UAV Dumps Nearly 11 Million Shares, Stirring Market Frenzy
Shares of Trump Media & Technology Group, trading under the ticker “DJT,” began their Nasdaq debut on March 26, 2024. United Atlantic Ventures (UAV), a significant shareholder, sold nearly 11 million shares shortly after a federal judge permitted the sale. This reduced UAV’s holdings to just 100 shares. The sale follows the expiry of a lock-up agreement on September 19 that had prevented insiders from selling their stakes. UAV, led by former “Apprentice” contestants Andrew Litinsky and Wes Moss, is the only insider known to have offloaded shares since the lock-up period ended.
Litinsky and Moss, who pitched the creation of a social media platform to former President Donald Trump and co-founded Trump Media in 2021, have been involved in legal disputes with the company over their shares. Trump owns over 56% of Trump Media, which primarily operates the Truth Social app. The stock closed at $13.98 on Thursday, down about 1%.
UAV’s regulatory filing revealed it sold the majority of its shares without specifying the transaction dates or prices. However, given that DJT shares have traded between $15.50 and $11.75, UAV likely received between $128 million and $170 million from the sale. The disclosure came after a Delaware judge ruled in UAV’s favor, preventing Odyssey Transfer and Trust Company from blocking the transfer of shares.
Initially, Trump Media’s stock soared to a high of $79.38 per share, boosting its market capitalization to over $10 billion. However, in recent months, the stock has plummeted by more than 80%, bringing its market cap below $2.8 billion. Analysts regard DJT as a meme stock, influenced more by investor sentiment towards Trump than solid business fundamentals. Trump Media has reported significant net losses of around $344 million on revenues under $2 million in its recent quarterly earnings.
Original Story https://www.cnbc.com/2024/09/26/trump-media-shareholder-dumped-more-than-7point5-million-shares.html
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