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shares Trump Media Technology Group The stock price continued to fall on Tuesday, falling more than 13% after the company’s major shareholder, former President Trump, was convicted.
Since a New York jury found Trump guilty of 34 felony counts of falsifying business records on May 30, Trump Media’s stock (stock code “DJT”) has fallen by about 40%.
Tuesday’s sell-off coincided with a June 18 deadline for some of the company’s investors to potentially exercise their warrants.
in a Archive On April 15, Trump Media disclosed to the U.S. Securities and Exchange Commission that it planned to issue nearly 21.5 million shares of common stock “upon the exercise of warrants.”
Trump Media’s registration statement has not yet been declared effective by the SEC. Until then, the shares it seeks to register cannot be sold. But the registration statement noted that holders of Trump Media warrants can exercise their warrants on a “cashless basis” starting Tuesday until the registration statement becomes effective.
The company also revised its registration statement on Tuesday to warn investors that there is little it can do to stop former President Trump from using other social media platforms besides the company’s signature Truth Social Network.
“To the extent that TMTG disagrees with President Donald J. Trump regarding the scope of its obligations to use or first post on Truth Social, TMTG lacks any meaningful remedy for such disagreement,” Correct line explain.
The company warned that the situation “could have a material adverse effect on TMTG’s business and/or operations.”
The warning comes just weeks after the former president, who almost exclusively uses Truth Social to make public statements, joined the social media app TikTok.
Meanwhile, Truth Social has struggled to maintain its smaller user base. According to data from digital intelligence platform Similarweb, the social media site’s average monthly visits from May 2023 to April 2024 fell by 39% compared with the previous 12-month period.
Shares of Trump Media were also hit hard last week, falling more than 5% on June 10 after the company submitted re-audited financial statements after its last auditor was accused of fraud.
In its latest financial report submitted in May, Trump Media Technology Group disclosed a net loss of US$327.6 million in the first quarter of this year, with total revenue of US$770,000.
The company’s market capitalization was approximately $5.4 billion as of 2:30 p.m. ET.
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