Latest Breaking News

mahatmakanejeeves

(57,516 posts) Mon Apr 15, 2024, 09:31 AM Apr 15

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

24 replies

= new reply since forum marked as read

Highlight:

Trump Media shares plunge after company files to issue additional DJT stock (Original Post) mahatmakanejeeves Apr 15 OP

On its way to penny stock-dom. Nt spooky3 Apr 15 #1

I didn't do it last week... appmanga Apr 15 #5

I suspect the judge in DE will pop this like a ripe grape.... getagrip_already Apr 15 #2

This is the best Monday morning in a long time! CrispyQ Apr 15 #3

It certainly is! PatSeg Apr 15 #15

Ponzi would be jealous. twodogsbarking Apr 15 #4

Yet another grift. The Unmitigated Gall Apr 15 #6

Trump and dump. The plan. twodogsbarking Apr 15 #7

I bet his broker has a short position of thousands of shares to try to offset his losses. kimbutgar Apr 15 #12

I hope Moscow Marjie is losing another $32,000 Blue Owl Apr 15 #8

How/why is the Securities and Exchange Commission allowing this charade to happen? Mawspam2 Apr 15 #9

SEC - run by Republicans so no surprise Traurigkeit Apr 15 #18

Pump and dumps do happen and SEC sleeps. BadgerKid Apr 15 #20

MAGAs aren't buying his stock? Owens Apr 15 #10

Just checked it's down 5 points right now! kimbutgar Apr 15 #11

Sell now -- implosion likely! Ponietz Apr 15 #13

You can only sell when people want to buy, am I right? FakeNoose Apr 15 #22

More shares on the market, more dilution for current holders of the stock. As someone posted above, iluvtennis Apr 15 #14

Any ideas if the russkis and/or Prince Bonesaw can do an end around and..... wolfie001 Apr 15 #16

Sell, Mortimer, sell! n/t Harker Apr 15 #17

Trump stock tanks after announcing massive share sale mahatmakanejeeves Apr 15 #19

Trump Media Sinks 15% After Registering Shares, Warrants LetMyPeopleVote Apr 15 #21

I need more money. Issue more shares - Donny Dipshit Yo_Mama_Been_Loggin Apr 15 #23

"First insiders now wanting to sell" Aussie105 Apr 16 #24

spooky3

(34,461 posts)

1. On its way to penny stock-dom. Nt

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 09:36 AM

Apr 15

appmanga

(572 posts)

5. I didn't do it last week...

Reply to spooky3 (Reply #1)

Mon Apr 15, 2024, 09:51 AM

Apr 15

...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)

2. I suspect the judge in DE will pop this like a ripe grape....

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 09:39 AM

Apr 15

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)

3. This is the best Monday morning in a long time!

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 09:46 AM

Apr 15

PatSeg

(47,520 posts)

15. It certainly is!

Reply to CrispyQ (Reply #3)

Mon Apr 15, 2024, 11:47 AM

Apr 15

twodogsbarking

(9,768 posts)

4. Ponzi would be jealous.

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 09:50 AM

Apr 15

The Unmitigated Gall

(3,821 posts)

6. Yet another grift.

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 09:53 AM

Apr 15

Man-Baby thinks he’s going to hornswoggle the markets.

twodogsbarking

(9,768 posts)

7. Trump and dump. The plan.

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 10:03 AM

Apr 15

kimbutgar

(21,167 posts)

12. I bet his broker has a short position of thousands of shares to try to offset his losses.

Reply to twodogsbarking (Reply #7)

Mon Apr 15, 2024, 11:23 AM

Apr 15

Blue Owl

(50,445 posts)

8. I hope Moscow Marjie is losing another $32,000

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 10:27 AM

Apr 15

Mawspam2

(732 posts)

9. How/why is the Securities and Exchange Commission allowing this charade to happen?

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 10:37 AM

Apr 15

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)

18. SEC - run by Republicans so no surprise

Reply to Mawspam2 (Reply #9)

Mon Apr 15, 2024, 01:49 PM

Apr 15

BadgerKid

(4,553 posts)

20. Pump and dumps do happen and SEC sleeps.

Reply to Mawspam2 (Reply #9)

Mon Apr 15, 2024, 02:54 PM

Apr 15

It’s just that DJT is so blatant about it.

Owens

(199 posts)

10. MAGAs aren't buying his stock?

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 11:15 AM

Apr 15

I'm shocked! (Sarcasm)

kimbutgar

(21,167 posts)

11. Just checked it's down 5 points right now!

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 11:22 AM

Apr 15

Can’t wait for it to go to zero!

Ponietz

(2,987 posts)

13. Sell now -- implosion likely!

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 11:35 AM

Apr 15

[https://www.forbes.com/sites/johntobey/2024/04/12/sell-trump-media-stock-djt-nowan-implosion-is-coming/?sh=1951a59d19ef]

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)

22. You can only sell when people want to buy, am I right?

Reply to Ponietz (Reply #13)

Mon Apr 15, 2024, 03:05 PM

Apr 15

iluvtennis

(19,864 posts)

14. More shares on the market, more dilution for current holders of the stock. As someone posted above,

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 11:44 AM

Apr 15

it's going to penny stock land. This is classic pump and dump scheme.

wolfie001

(2,252 posts)

16. Any ideas if the russkis and/or Prince Bonesaw can do an end around and.....

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 12:29 PM

Apr 15

.....buy up this shitty stock and bail his fat ass out? Just curious.

Harker

(14,026 posts)

17. Sell, Mortimer, sell! n/t

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 12:35 PM

Apr 15

mahatmakanejeeves

(57,516 posts)

19. Trump stock tanks after announcing massive share sale

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 01:50 PM

Apr 15

Business / Investing

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 Group’s 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 there’s 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 company’s stock at a set price.

{snip}

LetMyPeopleVote

(145,353 posts)

21. Trump Media Sinks 15% After Registering Shares, Warrants

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 02:58 PM

Apr 15

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

Donald Trump’s social media startup tumbled on Monday, extending a two-week slump, after the company took a first step toward allowing the former president and other insiders to capitalize on their stakes.

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)

23. I need more money. Issue more shares - Donny Dipshit

Reply to mahatmakanejeeves (Original post)

Mon Apr 15, 2024, 04:22 PM

Apr 15

Aussie105

(5,405 posts)

24. "First insiders now wanting to sell"

Reply to mahatmakanejeeves (Original post)

Tue Apr 16, 2024, 03:48 AM

Apr 16

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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