Trump Media shares plunge 17% as more DJT shares to dilute
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The SEC filing allows early investors in Trump Media to exercise public warrants they hold in the company, whose majority shareholder is former President Donald Trump.
Trump Media, in a prospectus filed with the SEC on Tuesday, said up to 14,375,000 additional shares would be issued upon the exercise of these warrants.
The company noted that there could be “a significant decline in the public price” of the shares if warrant holders sold their shares or if there was a “perception that such sales might occur.”
But Trump Media said existing shareholders who sold at a lower price after the registration “could still” enjoy a positive rate of return on the shares… due to the lower price per share “when they have purchased.
The prospectus also stated: “If all of the warrants covered by the registration statement are exercised for cash, (Trump Media) could receive up to a total of approximately $247 million in proceeds.” »
“In addition, $40 million of cash allocated to the Company’s balance sheet will no longer be subject to any restrictions following the effectiveness of the registration statement,” the prospectus said. “These funds would supplement the more than $200 million of unrestricted liquidity the company currently maintains.”
Devin Nunes, CEO of Trump Media, said in a statement: “Today marks another important milestone for Truth Social. »
“Once our S-1 is declared effective, we hope to be well positioned to aggressively pursue TV streaming, other platform enhancements and potential mergers and acquisitions,” Nunes said.
“With approximately 620,000 retail shareholders supporting our vision, the company looks forward to growing quickly and robustly. »
News Source : www.cnbc.com
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