Two of the original co-founders of Donald Trump’s Truth Social platform have cashed out their shares amid their ongoing feud with the former president.
According to regulatory disclosures: published On Thursday, the investment vehicle managed by Andrew Litinsky and Wesley Moss by Trump Media and Technology Group (TMTG) liquidated most of its approximately 7.53 million shares, which are now worth about $100 million based on the stock’s last closing price.
“As of this filing date, United Atlantic Ventures LLC owns 100 shares,” the statement said.
Litinsky and Moss perform official duties for the Company and are not officers or directors. From a regulatory perspective, they are not considered insiders, but rather passive investors who are not interested in material non-public information. Therefore, their sales inventory should not be viewed by outsiders as a sign of problems that they are not yet aware of.
The two met Trump for the first time when they appeared on Season 2 of Trump’s TV reality show. cub, This was broadcast 20 years ago. After Trump was banned from Twitter for inciting the Jan. 6 Capitol riot, they convinced the former president to get his own social media platform and agreed to give him a majority stake.
When Trump’s media group went public in late March (using Trump’s initials as its ticker symbol), UAV owned 5.5% of the publicly traded company.
However, soon the relationship between the two sides deteriorated. Litinsky and Moss went on to sue the company. shortenedTMTG countersued, claiming that it interfered with Truth Social’s launch.
UAV’s stake had declined to less than 3.8% of outstanding shares by mid-August due to additional stock issues that diluted the stake, according to the filing.
Concern about overstocking
UAV did not disclose exactly when the sale took place and whether it occurred over more than one trading session. However, generally, if a 13G disclosure like this is made by a passive shareholder with a significant stake, it must be filed within five business days of the transaction, giving some leeway.
However, UAVs are subject to a lock-in period that prohibits their sale before September 19. So the price range is likely to be between $12 and $15 per share.
Although the key stakeholders involved in exiting an investment are not typically trusted, the market was well aware of the ongoing discord between Litinsky, Moss, and the company. Earlier this month, UAV won a lawsuit demanding that Odyssey Transfer and Trust, the custodian of the shares held in escrow, release 7.53 million shares as soon as the lock expired last Thursday.
With Litinsky and Moss cashing out, some of the uncertainty hanging over the company should be removed as their shares are now fully absorbed by the market.
While the future of TMTG remains a concern, the bigger immediate fear for investors was the potential sale of shares by the former president, who owns about 115 million shares, or about 57% of the company.
Despite the former president’s recent claims that he has no intention of selling, shares of TMTG tumbled to record lows on Tuesday as Trump’s mounting legal costs raised suspicions that he may have to cash in on some of his stake.
So far there is no evidence that he has. Instead, Trump has lent his personal name to a variety of branded goods he sells, from sneakers to Bibles to silver coins. On Thursday, he unveiled his latest product: diamond-encrusted wristwatches worth $100,000 each.
TMTG did not respond to the following requests: luck For comments.
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