On Tuesday, Trump Media & Technology Group Corp. shares were trading lower after the U.S. SEC declared the effectiveness of the registration statement on Form S-1 related to the resale of certain shares and warrants by certain securityholders.
The prospectus was filed on June 10 for the issuance of up to 14.4 million common shares upon warrant exercise and resale of 146.1 million shares by selling stockholders, including 78.8 million shares held by Donald Trump. With this registration statement in effect, covered selling securityholders can now publicly resell their securities and the warrants have become eligible for cash exercise.
If all warrants covered by the registration statement are cash exercised, Trump Media & Technology Group may receive up to an aggregate of approximately $247 million in proceeds. Additionally, $40 million of restricted cash on the company’s balance sheet will become unrestricted as a result of the registration statement becoming effective.
Devin Nunes, CEO of Trump Media & Technology Group, stated that this marks another milestone for Truth Social, with their S-1 being declared effective they expect to be well-positioned to energetically pursue TV streaming, other platform enhancements and potential mergers and acquisitions with approximately 620,000 retail shareholders supporting their vision they look forward to expanding quickly and robustly.
During Tuesday’s regular session, Trump Media & Technology Group shares fell 9.82% to close at $31.31 and are dropping further after-hours according to Benzinga Pro they are down 13.93% at $26
