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Shares of Trump Media & Technology Group Corp (TMGT) plunged after the company filed with the U.S. Securities and Exchange Commission to issue 21 million shares.
The parent company of the social media platform Truth Social has contacted the SEC with a Files S-1 Resale Registration Statement.
Trump stocks plunge after announcement
The company's shares ended the trading day down another 18% from initial trading. The SEC filing states:
We are registering the resale of an aggregate of 146,108,680 shares of common stock by the selling securityholders or their permitted transferees named in this prospectus, consisting of:
- 1,133,484 placement shares;
- Up to 14,316,050 founder and anchor investor shares;
- 744,020 convertible shares;
- 965,125 DWAC compensation shares;
- 690,000 TMTG compensation shares;
- 6,250,000 Alternative Financing Shares;
- 7,116,251 private option shares;
- 143,750 representative shares; And
- 114,750,000 shares of President Trump.
This brings the total drop down to almost 60% of the introductory price of the former president's company shares. We reported earlier this month that the initial stock had fallen 20% in its first week of trading on the stock market.
Digital World Acquisition Corp merged with Trump Media in late February amid much fanfare. The much-discussed stock peaked at $66.22, so the drop to $26.61 is a catastrophic drop ahead of a possible further share offering.
The $52.77 plunge will be costly for the company, but as we reported last week, executives are still taking home significant compensation in this tumultuous opening.
TMGT leaders received $6.25 million in promissory notes.
This amount is broken down into $1.15 million for Chief Executive Officer Devin Nunes, $4.9 million for Chief Financial Officer Phillip Juhan and $200,000 for Chief Operating Officer Andrew Northwall.
It will be interesting reading to see if the SEC approves the stock offering, and it will certainly have an impact on TMGT's future.
Image: Ideogram.
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