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Former President Donald Trump set to acquire 36 million additional shares Trump Media Tuesday – The “profit” bonus was worth more than $1.25 billion at Monday’s prices.
Trump Media, which owns the Truth Social app, was trading at about $35 a share at noon Monday, about half the price it paid when it went public in March.
But that price is twice the benchmark minimum share price of $17.50, which DJT stock must hit by Tuesday’s close for Trump to qualify for additional so-called perks. income stocks.
The gain is contingent on the benchmark price hitting the benchmark price on 20 of the 30 trading days starting on March 25.
As of 12:17 pm ET, Trump Media shares were down about 1.8%.
Trump will acquire an additional 36 million shares from the 78.75 million shares he already owns as the company’s majority shareholder.
If the earnings shares are added to his existing shares, Trump’s total stake in Trump Media would have a book value of more than $4 billion, or $35 per share.
Trump Media has the right to issue a total of 40 million shares of profit-making stock as part of a merger deal with publicly traded shell company Digital World Acquisition Corp.
“Assuming the full issuance of Earnout shares, President Donald J. Trump will receive 36,000,000 Earnout shares,” the company said in a securities filing. The filing shows that some, if not all, of the Earnout shares will be issued as part of the incentive plan. ) The remaining shares will be issued to Trump Media executives.
Trump heard opening statements in his criminal hush-money trial in a New York City court on Monday. The court resumed proceedings against the Republican presidential candidate on Tuesday.
The merged company, whose full name is Trump Media & Technology Group Corp., began trading publicly under the DJT stock code on March 26, with an opening price of $70.90 per share.
The price rose to a high of nearly $80 that day, giving the company a market value that briefly exceeded $9 billion. Despite reporting a net loss of $58 million in 2023, revenue was only $4.1 million.
But since then, Trump Media’s stock price has plummeted. As of the close of trading on April 15, the stock price had fallen nearly 68% from the opening price.
Shares rose sharply last week. But as of Monday, Trump Media’s stock price was still about 50% below its listing price, wiping billions of dollars off the company’s market value.
The stock last traded at a benchmark low of $17.50 in January, when the SEC approved the planned merger of DWAC and Trump Media.
It remains to be seen whether issuing income shares to Trump will impact Trump Media’s stock price.
Any shares Trump owns are subject to a lock-up clause that prohibits him from selling them for six months after the merger deadline.
Although the Trump Media board could amend the provision, so far, no action has been taken.
CNBC asked a company spokesperson about the expected trigger for Trump dividend stocks.
She responded: “Trump Media has over $200 million in the bank, has zero debt, is meeting all obligations related to the merger and is rapidly advancing its business plan.”
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