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The stock price is Trump Media On Truth Social app owner indicated that it registered additional shares Declared Effective by the U.S. Securities and Exchange Commission.
Shares of Trump Media, stock code DJT, fell nearly 10% on the regular trading day.
SEC statement authorizes early investors in Trump Media to exercise Public Warrants They hold shares in the company, whose majority shareholder is former President Trump.
Trump Media said in a prospectus filed with the SEC on Tuesday that up to an additional 14,375,000 shares would be issued upon exercise of the warrants.
The company noted that if warrant holders sell their shares or “believe that these sales may occur,” the stock’s “publicly traded price could decline significantly.”
But Trump Media said existing shareholders who sold at a lower price after registration “can still experience a positive stock return… due to the lower price per share” when purchasing their shares.
The prospectus also stated that “If all warrants covered by the registration statement are exercised for cash, (Trump Media) may receive proceeds totaling approximately $247 million.”
“In addition, with the effective date of the registration statement, $40 million of restricted cash on the company’s balance sheet will no longer be restricted,” the prospectus said. “These funds will supplement the more than $200 million of unrestricted cash currently retained by the company. cash.”
“Today marks another milestone for Truth Social,” Trump Media CEO Devin Nunes said in a statement.
“With the announcement of our S-1, we expect to be well-positioned to aggressively pursue television streaming, other enhancements to our platform, and potential acquisitions,” Nunes said.
“Approximately 620,000 retail shareholders support our vision and the company looks forward to expanding rapidly and strongly.”
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