Technology
Monday, April 15th, 2024 3:28 pm EDT
Key Points
- Trump Media’s shares plummeted over 15% following the company’s announcement to issue additional shares of stock, coinciding with the commencement of Donald Trump’s criminal trial.
- Trump Media, the creator of the Truth Social app, experienced a significant decline, nearly 20% the previous week, and trades under the ticker DJT on the Nasdaq.
- The company filed a “preliminary prospectus” with the Securities and Exchange Commission, outlining plans to offer more than 21.4 million shares of common stock, alongside the resale of up to 146.1 million shares from selling securityholders, including Trump himself.
Trump Media faced a steep decline of over 15% in its stock value after filing to issue millions of additional shares, with former President Donald Trump being the majority stakeholder in the company. This drop occurred coinciding with the commencement of Trump’s criminal trial in Manhattan on hush money-related charges. The company’s shares, traded under the ticker DJT on Nasdaq, had already fallen nearly 20% the previous week. The filing with the Securities and Exchange Commission outlined plans to offer more than 21.4 million shares of common stock, along with the resale of up to 146.1 million shares from selling securityholders, including Trump. Additionally, Trump stands to gain 36 million “earnout shares” if the stock maintains a certain value. Despite Trump’s efforts to promote the Truth Social app, created by Trump Media to replace his suspended social media accounts, the company has yet to disclose key performance indicators, reporting a significant net loss in 2023. The stock’s tumultuous trajectory began with its public trading debut in March, where it soared to highs above $70 per share but has since plummeted, losing nearly two-thirds of its market capitalization. Nonetheless, if the stock price remains sufficiently high, Trump and other insiders could potentially receive substantial windfalls.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/15/trump-media-shares-plunge-after-company-files-to-issue-additional-djt-stock.html
