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Shares of Trump Media & Technology Group fell nearly 10% on Tuesday, continuing the stock’s slide following the conviction of former President Donald Trump, the company’s majority shareholder.
The stock closed Tuesday at $31.31 on a well-above-average trading volume of 7.52 million shares.
Shares of Trump Media, which trades under the ticker symbol “DJT,” have fallen about 40% since May 30, when a New York jury found Trump guilty of 34 counts of falsifying business records.
Tuesday’s selloff coincided with a June 18 deadline in which some of the company’s investors could exercise stock warrants.
In an April 15 filing with the Securities and Exchange Commission, Trump Media announced its plans to offer nearly 21.5 million shares of common stock issuable “upon the exercise of warrants.”
Late Tuesday, the company announced that the SEC had declared its registration effective. “TMTG’s warrants covered by the registration statement are now eligible for cash exercise,” the company announced.
Within minutes of filing the 8K announcement, Trump Media’s stock had fallen more than 15% in after-hours trading.
The company also amended its registration statement on Tuesday to warn investors that there was little it could do to stop former President Donald Trump from using other social media platforms aside from the company’s signature Truth Social network.
“If TMTG disagrees with President Donald J. Trump about the scope of his obligation to use or first post on Truth Social, TMTG lacks a meaningful remedy with respect to that disagreement,” the amended lines read.
Such a scenario, the company warned, “could have a material adverse impact on TMTG’s business and/or operations.”
The warning came just weeks after the former president – who uses Truth Social almost exclusively for his public statements – joined the social media app TikTok.
Truth Social, meanwhile, is struggling to maintain its small user base. According to digital intelligence platform Similarweb, the average number of monthly visits to the social media site from May 2023 to April 2024 was 39% lower than the previous 12-month period.
Shares of Trump Media also took a hit last week, falling more than 5% on June 10 as the company reported its re-audited financial statements after its last auditor was indicted on fraud charges.
Trump Media & Technology Group reported a net loss of $327.6 million and total revenue of $770,500 in the first quarter of the year in its most recent earnings report filed in May.
The company had a market capitalization of about $5.5 billion as of Tuesday’s close.
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Update: This story has been updated to include details about an 8K filing published late Tuesday.
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2024-06-18 20:41:05
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