Future Tech

Trump Media says SEC's decision may help it get $247 million

Tan KW
Publish date: Wed, 19 Jun 2024, 09:31 AM
Tan KW
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Future Tech

Trump Media & Technology Group said on Tuesday the Securities and Exchange Commission has declared effective the company's filing for resale of certain shares and warrants, potentially giving it about $247 million in proceeds.

The company said that with its warrants now being exercisable, it expects to be "well-positioned" to pursue TV streaming, other enhancements to the platform and potential mergers and acquisitions.

Shares of the company that owns former U.S. President and Republican presidential candidate Donald Trump's social media platform Truth Social, were down about 14% in extended trading over potential equity dilution.

Trump Media said that the proceeds from the potential sale of these warrants would supplement more than $200 million in unrestricted cash it currently retains.

The company added that an additional $40 million of restricted cash on its balance sheet will become unrestricted as a result of the registration statement on Form S-1 becoming effective.

The company's stock has fallen nearly 80% so far this year, as of last close, and it has a market capitalization of $6.14 billion, according to LSEG data.

 


  - Reuters

 

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