Trump Media shares plunge after company files to issue additional DJT stock
Source: CNBC
POLITICS
Trump Media shares plunge after company files to issue additional DJT stock
PUBLISHED MON, APR 15 2024 8:48 AM EDT UPDATED 2 MIN AGO
Kevin Breuninger
@KEVINWILLIAMB https://twitter.com/KevinWilliamB
KEY POINTS
Shares of Trump Media plunged more than 17% in the pre-trading hours after the company filed to issue millions of additional shares of stock.
The dramatic slide came as Donald Trump headed to a Manhattan court to begin jury selection for his criminal trial on hush money-related charges.
Trump is the majority stakeholder in Trump Media, which created the Truth Social app and trades under the stock ticker DJT on the Nasdaq.
Shares of Trump Media plunged more than 17% in premarket trading Monday after the company filed to issue millions of additional shares of stock. ... Trump Media's dramatic slide came as Donald Trump headed to a Manhattan court to begin jury selection for his criminal trial on hush money-related charges. Trump is the majority stakeholder in the company. ... Trump Media, which created the Truth Social app and trades under the stock ticker DJT on the Nasdaq, fell nearly 20% last week.
The company's intent to issue more common stock was made public Monday morning in a "preliminary prospectus" filed to the Securities and Exchange Commission. The shares cannot be issued until a registration statement with the SEC goes into effect. ... The filing describes a plan to offer more than 21.4 million shares of common stock, issuable "upon the exercise of warrants," the filing shows. Stock warrants give their holder the ability to buy shares at a predetermined price within a certain time frame.
The closing price of Trump Media's warrants was $13.69 as of Friday, according to the filing. The warrants are being traded on the Nasdaq under the ticker "DJTWW." That ticker was down more than 8% before the market opened Monday. ... The company also seeks to offer the resale of up to 146.1 million shares of stock from "selling securityholders," 114.8 million of which are held by Trump himself. Trump owns 78.8 million shares of the company, and stands to obtain 36 million "earnout shares" if the stock stays above a certain price for enough trading days.
This is breaking news. Please check back for updates.
Read more: https://www.cnbc.com/2024/04/15/trump-media-shares-plunge-after-company-files-to-issue-additional-djt-stock.html
Hat tip, Joe.My.God.
Trump Media Stock Plummets In Pre-Market Trading
April 15, 2024
https://www.joemygod.com/2024/04/trump-media-stock-plummets-in-pre-market-trading/
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ETA:
Previous Close 32.59
Open 28.33
spooky3
(34,461 posts)appmanga
(572 posts)...but I put in an order on a put option for this to go down to $15 by 5/17. Why the hell not? Everything Trump touches, dies.
getagrip_already
(14,768 posts)He is already pizzed at trump. Gobsmacked was the word he used. Over tsf's attempts to go around his authority to steal back the 8.5 million shares from the 2 dudes who put this deal together.
This is the very dilution the 2 brought suit to prevent before him.
This stock is incorporated in DE, and he has authority over the company.
Should be a short ride.
But the stock is going to take a brutal whipping.
Diluting the value of existing shares by at least 75% is going to leave a painful mark on the faithful.
"How could they do this?". "They just issued new shares to donald and not to us?".
Bwah hah hah hah hah. Welcome to the underside of the bus!
CrispyQ
(36,482 posts)PatSeg
(47,520 posts)twodogsbarking
(9,768 posts)The Unmitigated Gall
(3,821 posts)Man-Baby thinks hes going to hornswoggle the markets.
twodogsbarking
(9,768 posts)kimbutgar
(21,167 posts)Blue Owl
(50,445 posts)Mawspam2
(732 posts)This fraud certainly will hurt the confidence of the entire marketplace.
If the SEC allows this shit without action, what's to stop Meta/Apple/Alphabet/Tesla from doing the same?
Traurigkeit
(193 posts)BadgerKid
(4,553 posts)Its just that DJT is so blatant about it.
Owens
(199 posts)I'm shocked! (Sarcasm)
kimbutgar
(21,167 posts)Cant wait for it to go to zero!
Ponietz
(2,987 posts)Do not wait. These storm clouds are not going to dissipate.
Atop the previously discussed negative facts are these destructive issues:
Insider infighting over stockholdings
Competing insider shareholder lawsuits
First insiders now wanting to sell
Feeble responses by Trump Media CEO Nunes in interview by Fox Business News
Still-open new million-share spigot from the convertible securities and contracts that are converting
Highly diluting "bonus" 40M share issuance if the stock can remain above $17.50 for 20 of 30 days. (Counting the March 26 merger day, the number on April 12 would be 18.)
Key share price breakdown below $35 barrier
FakeNoose
(32,658 posts)iluvtennis
(19,864 posts)it's going to penny stock land. This is classic pump and dump scheme.
wolfie001
(2,252 posts).....buy up this shitty stock and bail his fat ass out? Just curious.
Harker
(14,026 posts)mahatmakanejeeves
(57,516 posts)Trump stock tanks after announcing massive share sale
By Krystal Hur and David Goldman, CNN
4 minute read
Updated 12:48 PM EDT, Mon April 15, 2024
New York (CNN) Trump Media & Technology Groups stock is tumbling again after the company announced a potentially massive new influx of shares. The struggling company is rapidly losing money, and a new stock offering could help it stay afloat.
But theres a downside to going back to the market with more shares: The addition of 21.5 million shares for sale announced Monday would add more than 15% more stock to the publicly available shares of the Truth Social owner. That would substantially devalue existing shareholders stakes including that of former President Donald Trump. And it means that millions of shares could be sold off.
This filing seeks to register all shares related to the merger that took Trump Media public, including those that are tied to warrants. Warrants give the holder the right to buy shares of a companys stock at a set price.
{snip}
LetMyPeopleVote
(145,353 posts)Trump Media has filed a registration statement with the SEC to help current holders sell their stock and warrants.
Link to tweet
https://finance.yahoo.com/news/trump-media-plunges-registering-shares-130049015.html
Trump Media & Technology Group Corp., parent of Truth Social, filed to register shares, including those linked to warrants. The move could ultimately bring forward sales from insiders that are currently not permitted until September.
Shares slumped 15% to $27.83 as of 9:50 a.m. in New York, the lowest level since January. Warrants, which are tied to the stock and can be exchanged with cash for shares of the company, sank 6.9% to $12.75. The company has had its market value slashed by more than $5 billion from a peak after debuting in March.
The slump means the paper windfall for the former president has dropped to $2.3 billion from more than $5 billion in a matter of weeks. However, if the stock can hold above the $17.50 mark, Trump and insiders would be in line to get another 40 million shares to divvy up. Even after the latest slide, that so-called earnout would be worth $1.2 billion.
The company registered as many as 146 million common shares, as well as up to 21 million shares that are issuable upon the exercise of warrants. The filing also registered up to 4 million warrants to purchase common stock. All securities being registered are either held by or underlie securities held by existing holders of Trump Media.
The Form S-1 is amazing. See https://www.sec.gov/ix?doc=/Archives/edgar/data/1849635/000114036124019745/ny20026576x1_s1.htm
This filing is going to further dilute the public shareholders in a very thinly traded stock
Link to tweet
The stock has been as low as $26.83 today.
I am looking forward to reading the Form s-1 and 46 pages of risk factors. This will be fun to watch
Yo_Mama_Been_Loggin
(108,066 posts)Aussie105
(5,405 posts)Isn't that how the stock market works?
You buy in early, wait a bit, and sell for a HUUGE profit!
Down 18.35% today and at US $26.61
Down 27.14% for the last week.
Down 33.44% for the last month.
Enjoy looking for profit there!
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