SARASOTA, Fla. - Trump Media & Technology Group Corp. (NASDAQ: DJT), operator of the social media platform Truth Social, announced on Thursday that it anticipates receiving over $69.4 million in proceeds following the cash exercise of warrants on June 20 and 21. The opportunity for the cash exercise of these warrants came after the SEC declared the company's registration statement effective on June 18, 2024.
If all warrants under the registration are exercised for cash, the company could receive up to approximately $247 million. Additionally, the effective registration statement will release $40 million of restricted cash on TMTG's balance sheet. This is in addition to the more than $200 million in unrestricted cash the company reported as of June 18.
The registration statement allows investors to access a prospectus through the SEC's website, and interested warrant holders are advised to contact their registered broker for exercising options. While the registration enables the sale of securities, it does not necessarily indicate that all listed securityholders will sell their shares. Notably, the company's directors, officers, affiliate President Donald J. Trump, and certain other securityholders remain subject to a lockup period and are currently restricted from selling their shares.
TMTG's mission, as stated, is to create a space for free speech and to challenge the censorship practices of Big Tech companies. The release of funds through the warrant exercises is expected to further support the company's initiatives.
This report is based on a press release statement from Trump Media & Technology Group. The offering of the securities covered by the registration statement is only made by means of a prospectus, and no offer to sell or solicitation of an offer to buy these securities is being made as a result of this announcement.
In other recent news, Trump Media & Technology Group Corp. (TMTG) has been actively communicating with investors and regulatory bodies. The company's recent activities include filing an amended registration statement with the SEC, allowing for the resale or initial issuance of certain shares of common stock and warrants following their merger with Digital World Acquisition Corp. This move could potentially bring in up to $247 million in proceeds for TMTG, with an additional $40 million of restricted cash becoming unrestricted due to the effectiveness of the registration statement.
In addition to these financial developments, TMTG has been investigating potential market manipulation of its stock, as detailed in a letter to U.S. House Committees. The company has also disclosed an online article and a corresponding Q&A session, providing insights into the operations and outlook of the company.
TMTG also reported a significant increase in its net loss for the first quarter, totaling $327.6 million, attributed to non-cash expenses faced by the company prior to its merger. Meanwhile, the company has completed its live TV streaming platform's research and development phase, with plans to introduce the streaming content in phases. These are among the recent developments involving TMTG, a company committed to transparency and regulatory compliance.
InvestingPro Insights
Trump Media & Technology Group Corp. (NASDAQ: DJT), known for its platform Truth Social, has shown a mixed performance in the market, as reflected in recent data from InvestingPro. Over the past week, the company's shares have seen a positive return of 2.07%, indicating some investor optimism in the short-term.
This contrasts with a slight 1-month price dip of -0.38% and more pronounced declines over the past three and six months, with returns of -5.55% and -5.49% respectively. Year-to-date, the company's shares have decreased by -4.94%, while the 1-year price total return stands at a modest gain of 2.54%.
With the previous close at 15075.66 USD and an average daily volume over the past three months of 109.65 million, the company's liquidity and investor interest remain notable. These metrics may be particularly relevant for investors considering the recent opportunity to exercise warrants, which could inject substantial proceeds into the company and potentially affect its financial trajectory.
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