Direct Digital Management, LLC - 05 Dec 2023 Form 4 Insider Report for Direct Digital Holdings, Inc. (DRCT)

Role: 10%+ Owner
Signature: /s/ Mark Walker as Managing Partner of Direct Digital Management, LLC
Issuer symbol: DRCT
Transactions as of: 05 Dec 2023
Net transactions value: $0
Form type: 4
Filing time: 07 Dec 2023, 20:00:47 UTC
Previous filing: 30 Aug 2022
Next filing: 20 Jun 2025
SEC: View on sec.gov

Transactions Table

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Ownership	Footnotes
transaction	DRCT	Class A Common Stock	Conversion of derivative security		+410,000			410,000	05 Dec 2023	Direct	F1
transaction	DRCT	Class A Common Stock	Other	$0	-410,000	-100%	$0.000000^*	0	05 Dec 2023	Direct	F2

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Underlying Class	Amount	Exercise Price	Ownership	Footnotes
transaction	DRCT	Class A Common Units of Direct Digital Holdings LLC	Conversion of derivative security	$0	-410,000	-3.6%	$0.000000	10,868,000	05 Dec 2023	Class A Common Stock	410,000		Direct	F1

* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Explanation of Responses:

Id	Content
F1	Pursuant to the Second Amended and Restated Limited Liability Company Agreement of Direct Digital Holdings LLC, dated as of February 15, 2022, Class A Common Units (as defined therein) held by the Reporting Person are exchangeable for shares of Class A Common Stock on a one-for-one basis, subject to certain exceptions, conditions and adjustments. The Class A Common Units have no expiration date. At the time of any such exchange, an equal number of shares of Class B Common Stock of the Issuer held by the Reporting Person, which have no economic value and entitle holders thereof to one vote per share on all matters on which stockholders of the Issuer are entitled to vote generally, are cancelled.
F2	The Reporting Person distributed 410,000 shares of Class A Common Stock to two of its members for no consideration.

Content

Pursuant to the Second Amended and Restated Limited Liability Company Agreement of Direct Digital Holdings LLC, dated as of February 15, 2022, Class A Common Units (as defined therein) held by the Reporting Person are exchangeable for shares of Class A Common Stock on a one-for-one basis, subject to certain exceptions, conditions and adjustments. The Class A Common Units have no expiration date. At the time of any such exchange, an equal number of shares of Class B Common Stock of the Issuer held by the Reporting Person, which have no economic value and entitle holders thereof to one vote per share on all matters on which stockholders of the Issuer are entitled to vote generally, are cancelled.

The Reporting Person distributed 410,000 shares of Class A Common Stock to two of its members for no consideration.