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shares Trump Media The company, whose majority shareholder is former President Trump, said it raised more than $105 million in cash through the exercise of warrants, and its shares fell after the market opened on Tuesday.
The funds were released during a 12-day period starting June 20, two days after the company behind social media platform Truth Social announced that the U.S. Securities and Exchange Commission had declared its new stock registration effective.
The announcement allows for the issuance of millions of shares of Trump Media stock upon the exercise of warrants, which allow holders to purchase shares at a set price within a specified period of time.
While the move brings money — Trump Media said it would net about $247 million if all warrants were exercised in cash — it also risks diluting the company by expanding its float. The company’s share price.
TMTG stock price
In addition to proceeds from the exercise of warrants, Trump Media said in a press release Tuesday that approximately $41 million in restricted cash “has recently become unrestricted.”
The company is listed on Nasdaq under the stock code “DJT”, which is Trump’s initials.
Much of the funding was obtained before the company completed its merger with blank-check company Digital World Acquisition Corp. in late March, which allowed Trump Media to trade publicly without an initial public offering.
Shares of Trump Media have fluctuated wildly since their public debut, with a sharp rise before weeks of declines and recoveries. Despite its meager revenue, the company has a multi-billion dollar market capitalization and is considered a meme stock.
The company’s shares suffered a week-long selloff after Trump, who owns about 65% of the company, was found guilty of 34 counts of falsifying business records in a hush-money criminal trial in New York.
Although shares fell sharply the day after Trump’s first debate with President Joe Biden, the company has partially recovered from the losses.
On Monday, Trump Media said it had been included in the Russell 1000 and Russell 3000 indexes.
This is developing news. Please check back for updates.
