United Atlantic Ventures Sells Nearly 11 Million Trump Media Shares, Retaining Only 100

In a significant financial move, United Atlantic Ventures (UAV), a prominent stakeholder in Trump Media, has divested nearly 11 million shares in the company, as per a regulatory filing from Thursday. This strategic maneuver has significantly impacted UAV's holdings, leaving it with only 100 shares in Trump Media, the parent company of the Truth Social app.

The decision to sell the 5.4% stake in Trump Media's outstanding shares came after the expiration of a lock-up agreement, which had previously restricted company insiders from selling their shares. The agreement lapsed on September 19, paving the way for UAV to offload its substantial stake. Notably, UAV stands as the sole insider to have divested shares since the expiration of the lock-up.

Background of UAV's Involvement

UAV, a collaboration between former "Apprentice" contestants Andrew Litinsky and Wes Moss, played a crucial role in the inception of Trump Media. The duo initially proposed the concept of a social media company to former President Donald Trump and co-founded the venture with him in 2021. However, the partnership soured, leading to legal disputes between Litinsky, Moss, and Trump over the disposition of their shares.

As per SEC filings, UAV held 7,525,000 shares of Trump Media as of March 25, coinciding with the completion of the merger with the blank-check company Digital World Acquisition Corp. Subsequently, UAV was allocated an additional 3.44 million shares, issued sans any additional consideration, based on the performance of Trump Media's Common Stock, as stated in an SEC filing on September 5. This transaction culminated in UAV's holding exceeding 10.96 million shares.

Speculative Financial Impact

The precise timeline and valuation of UAV's share disposal in the past week remain undisclosed in Thursday's SEC filing. Nevertheless, trade records indicate that DJT, the ticker symbol for Trump Media's shares, fluctuated between $15.50 and $11.75 during that period. This notably suggests that UAV may have reaped between $128 million and $170 million from the sale of its shares.

Furthermore, it was highlighted in a Florida lawsuit against UAV that Trump Media had forewarned about UAV's intention to liquidate all its shares "as soon as possible" upon the expiration of the lock-up agreement. This impending divestment had raised concerns regarding the potential market impact and valuation of Trump Media's shares.

As the financial landscape surrounding Trump Media continues to evolve, this divestment by UAV marks a noteworthy juncture in the company's corporate trajectory, warranting close attention from stakeholders and market analysts alike.