The media will forever attack Trump, no matter how well the stock does. We have seen how they work for years now, so who would expect a different treatment from the powers that be on Wall Street.
The stock price of Trump Media experienced a significant drop, falling more than 17% in after-hours trading following a declaration by the Securities and Exchange Commission (SEC) that the registration of additional shares was effective. This decision came after the company’s stock, traded under the DJT ticker, had already decreased by nearly 10% during regular trading hours.
🇺🇸 TRUMP MEDIA SHARES TUMBLE 17% IN AFTER-HOURS TRADING
This happened as the company announced the SEC’s approval of additional share registration.
The downturn follows a nearly 10% drop during regular trading hours, compounded by concerns over potential stock dilution.
This… pic.twitter.com/k0fF4kUNht
— Mario Nawfal (@MarioNawfal) June 19, 2024
The SEC’s declaration allows early investors in Trump Media, where former President Donald Trump holds a majority share, to exercise public warrants associated with their investment. According to a prospectus filed by Trump Media, this could lead to the issuance of up to 14,375,000 additional shares if these warrants are exercised.
The company has expressed concerns over potential market reactions, noting that the execution of these warrants could lead to “a significant decline in the public trading price” of its stock. This could occur either through direct sales of the newly issued shares or the mere perception that such sales might happen. Despite this, Trump Media suggested that shareholders who sell after the price drop could still see a positive return, depending on the original purchase price of their shares.
Trump Media Stock $djt is trading at $27 after hours.
So glad I shorted it in the $50’s pic.twitter.com/erfZxsv85B
— Brian Krassenstein (@krassenstein) June 19, 2024
Financially, if all the warrants covered by the registration are exercised for cash, Trump Media anticipates it could receive up to approximately $247 million in proceeds. The prospectus also highlighted that $40 million of restricted cash on the company’s balance sheet would become unrestricted, adding to over $200 million in currently unrestricted cash.
🇺🇸SEC APPROVES TRUMP MEDIA SHARE RESALE
The SEC has approved Trump Media & Technology Group’s filing to resell shares and warrants, potentially raising $247 million.
The funds will support TV streaming expansion, platform enhancements, and potential acquisitions.
Truth… pic.twitter.com/ZFCiHlWZen
— Mario Nawfal (@MarioNawfal) June 19, 2024
Devin Nunes, CEO of Trump Media, remarked on the registration’s impact, stating, “Today marks another milestone for Truth Social.” He emphasized the company’s plans to expand by exploring opportunities in TV streaming, enhancing the platform, and considering potential mergers and acquisitions. With the support of roughly 620,000 retail shareholders, Trump Media is poised to pursue growth and further develop its initiatives vigorously.
Major Points:
- Trump Media’s stock price fell over 17% in after-hours trading following SEC approval of additional share registration.
- The decline occurred after a nearly 10% drop during regular trading hours.
- SEC’s approval allows early investors to exercise public warrants, potentially issuing up to 14.375 million new shares.
- Trump Media anticipates receiving up to $247 million if all warrants are exercised, with an additional $40 million in restricted cash becoming available.
- CEO Devin Nunes highlights this as a milestone for Truth Social, with plans for expansion into TV streaming and potential mergers and acquisitions.
RM Tomi – Reprinted with permission of Whatfinger News
