Trump Media’s Equity Warps: What to Expect after Effective Amended Registration Statement and Warrants Exercised

On June 10, Trump Media & Technology Group Corp (DJT) filed a prospectus for the issuance of up to 14.4 million common shares upon the warrant exercise and resale of 146.1 million shares by selling stockholders, including 78.8 million shares held by Trump himself. CEO Devin Nunes expressed gratitude to SMC for serving as the independent auditor and enabling the company to file an Amended Registration Statement which they hope the SEC will promptly review.

The amended registration statement has now been declared effective by the SEC, allowing covered selling securityholders to publicly resell the securities covered by the registration statement. This news has caused a slight dip in Trump Media’s share price, with DJT trading lower on Thursday at $28.20, down 9.93% from its previous close.

Trump Media’s warrants covered by the registration statement are also now eligible for cash exercise, potentially generating up to approximately $247 million in proceeds if all warrants are exercised. Additionally, the effectiveness of the registration statement means that $40 million of restricted cash on Trump Media’s balance sheet will become unrestricted, supplementing the company’s existing unrestricted cash reserves of over $200 million.

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