Shares of Trump Media & Technology Group Corp (TMGT) fell after the entity filed with the US Securities and Exchange Commission (SEC) to issue 21 million shares.
The parent company of social media platform Truth Social has filed a Files S-1 resale registration statement with the SEC.
Trump’s stock plummets after announcement
The company’s shares closed the day on the stock exchange with a further decline of 18% compared to initial trading. The SEC document states:
We are registering the resale by the Selling Noteholders indicated in this prospectus, or their authorized transferees, for a total of 146,108,680 ordinary shares, consisting of:
- 1,133,484 Shares on Placement;
- Up to 14,316,050 Founders and Anchor Investor shares;
- 744,020 Conversion Shares;
- 965,125 DWAC compensation shares;
- 690,000 TMTG compensation shares;
- 6,250,000 Alternative Financing Shares;
- 7,116,251 Shares with private warrants;
- 143,750 Representative Shares; AND
- 114,750,000 shares of President Trump.
This brings the overall decline to almost 60% of the launch price of the ex-president’s company’s shares. Earlier this month we reported that the initial stock had fallen 20% in its first week of trading on the stock exchange.
Digital World Acquisition Corp merged with Trump Media in late February to much fanfare. The highest mark for the much-discussed stock was $66.22, so the drop to $26.61 is a catastrophic drop ahead of a potential further share issuance.
The drop to $52.77 will be costly for the company, but as we reported last week, executives are still taking home sizable rewards in this turbulent opening.
Prominent TMGT figures received promissory notes in the amount of $6.25 million.
This is broken down into $1.15 million for CEO Devin Nunes, $4.9 million for Chief Financial Officer Phillip Juhan and $200,000 for Chief Operating Officer Andrew Northwall.
It will be an interesting read ahead to see if the SEC agrees to the stock issue and that will definitely impact the future of TMGT.
Image: ideogram.
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