Trump Media & Technology Group or TMTG tumbled over 14% Thursday after the Securities and Exchange Commission (SEC) announced the organization registration statement effective which could flood the demand with millions more Trump Media shares.
The media organization of ex-President Donald Trump declares the growth after the bell Tuesday, and the stock fell in extended trading then, as the SEC’s decision means that more than 14 million shares could hit the market if a number of investors exercise warrants and offload their shares, as outlined in the company’s prospectus.
With markets closed Wednesday for the Juneteenth vacation, Thursday was the foremost full day of trading after the declaration.
Exercised Warrants Could Net TMTG Nearly $250 Million
The organization said in Tuesday’s statement that all the warrants being exercised for money could create up to $247 million in proceeds, along with a further $40 million that has become unrestricted as a outcome of the registration statement being announced effective.
CEO Devin Nunes called the announcement “another milestone” for TMTG and Truth Social, the social media platform TMTG works, and said the organization expects to be “well-positioned” to tackle new regions of development like expanding Truth Social and pursuing a streaming television product.
Trump Media shares have experienced high volatility since it merged with Digital World Acquisition Corp. and became a general organization in March.
The stock has dropped in all but two trading sessions since Trump was convicted on 34 counts of falsifying organization records in a New York court on May 31.
Trump Media shares dropped 14.6% to close at $26.75 Thursday, their lowest position in more than two months.