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One of the president-elect’s main shareholders Donald TrumpThe media company sold almost its entire stake, a regulatory filing showed.
The disclosure made Thursday evening to the US Securities and Exchange Commission showed that financial company ARC Global Investments II and its director, Patrick Orlando, no longer hold more than 5% of the capital. Trump Media action.
Orlando, the former CEO of the company that took Trump Media public in a special purpose acquisition company merger, and ARC, the sponsor of that merger, now own just 30,147 DJT shares, or approximately 0.01% of the company’s common stock, according to the SEC Filing.
Trump Media reported As of early September, ARC held more than 11 million shares, or 5.4% of the company’s outstanding shares.
In mid-September, a Delaware judge ruled that Trump Media had violated an agreement with the CRA and must grant it. additional actions. The judge ordered that the parties ensure that ARC is able to sell or transfer its shares in time for the expiration of a lock-up agreement on September 19.
As of Friday morning, ARC’s diminished stake was worth about $850,000. CRA attorney Steven Fineman declined to comment on the sale.
Orlando and ARC said in the filing that the actions that required them to report the change took place on September 30. The timing of any specific stock sales was unclear.
The move by ARC and Orlando was revealed more than a month after another major shareholder, United Atlantic Ventures, virtually sold its equity. the entire stake in DJT.
Trump Media, which operates the Truth Social app, suffered a selloff in late summer, and by the end of September its stocks were trading near their post-merger lows. But there was a major stock market rally in October that recouped most of those losses.
This surge occurred in the run-up to the presidential election between Trump and the vice president. Kamala Harris. Analysts say many of Trump Media’s retail investors are fans of the Republican leader and are buying shares of the company to support him and bet on his political fortunes.
Trump, whose majority stake in Trump Media is worth more than $3 billion, has said he has no plans to sell his shares.
After winning another term in the White House, Trump used Truth Social to announce his picks for key Cabinet posts and other positions in his administration. He also posted on the social media site Elon Musksite belonging to Truth Social which is aimed at a much wider audience than Truth Social.
A Trump Media spokesperson did not immediately respond to CNBC’s request for comment on Thursday’s SEC filing.
Orlando would face legal action Florida And Delaware investors who accuse him and ARC of unfairly depriving them of shares.