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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsDJT stock down 16% after company files S-1 Resale Registration Statement
https://finance.yahoo.com/news/trump-media-technology-group-files-131700561.html
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DJT stock down 16% after company files S-1 Resale Registration Statement (Original Post)
MLAA
Apr 15
OP
Johnny2X2X
(19,328 posts)1. Basically they can't sell their shares right now
The people who started Truth Social are locked in for a time. No pump and dump. S-1 Resale registration is the first step towards them being able to capitalize on the stock. Hope it's worth pennies by the time they're allowed to sell it.
MLAA
(17,376 posts)2. I'm with you, pennies would be a fair valuation.
Jerry2144
(2,139 posts)3. If only a stock could have a negative price
This one could possibly be negative price.
edhopper
(33,669 posts)4. Who is still buying
any shares of this turkey?
I figure the only people still holding on are ones that need the loss deductions for their Cap Gains.
Stuckinthebush
(10,847 posts)5. True believers
Cult members are still buying I'd assume.
Fool and his money....ya know
dembotoz
(16,866 posts)6. kinda like buying joel osteen a new jet
folks will do it
LetMyPeopleVote
(146,035 posts)7. Trump Media Sinks 15% After Registering Shares, Warrants
Trump Media has filed a registration statement with the SEC to help current holders sell their stock and warrants.
Link to tweet
https://finance.yahoo.com/news/trump-media-plunges-registering-shares-130049015.html
Donald Trumps social media startup tumbled on Monday, extending a two-week slump, after the company took a first step toward allowing the former president and other insiders to capitalize on their stakes.
Trump Media & Technology Group Corp., parent of Truth Social, filed to register shares, including those linked to warrants. The move could ultimately bring forward sales from insiders that are currently not permitted until September.
Shares slumped 15% to $27.83 as of 9:50 a.m. in New York, the lowest level since January. Warrants, which are tied to the stock and can be exchanged with cash for shares of the company, sank 6.9% to $12.75. The company has had its market value slashed by more than $5 billion from a peak after debuting in March.
The slump means the paper windfall for the former president has dropped to $2.3 billion from more than $5 billion in a matter of weeks. However, if the stock can hold above the $17.50 mark, Trump and insiders would be in line to get another 40 million shares to divvy up. Even after the latest slide, that so-called earnout would be worth $1.2 billion.
The company registered as many as 146 million common shares, as well as up to 21 million shares that are issuable upon the exercise of warrants. The filing also registered up to 4 million warrants to purchase common stock. All securities being registered are either held by or underlie securities held by existing holders of Trump Media.
Trump Media & Technology Group Corp., parent of Truth Social, filed to register shares, including those linked to warrants. The move could ultimately bring forward sales from insiders that are currently not permitted until September.
Shares slumped 15% to $27.83 as of 9:50 a.m. in New York, the lowest level since January. Warrants, which are tied to the stock and can be exchanged with cash for shares of the company, sank 6.9% to $12.75. The company has had its market value slashed by more than $5 billion from a peak after debuting in March.
The slump means the paper windfall for the former president has dropped to $2.3 billion from more than $5 billion in a matter of weeks. However, if the stock can hold above the $17.50 mark, Trump and insiders would be in line to get another 40 million shares to divvy up. Even after the latest slide, that so-called earnout would be worth $1.2 billion.
The company registered as many as 146 million common shares, as well as up to 21 million shares that are issuable upon the exercise of warrants. The filing also registered up to 4 million warrants to purchase common stock. All securities being registered are either held by or underlie securities held by existing holders of Trump Media.
The Form S-1 is amazing. See https://www.sec.gov/ix?doc=/Archives/edgar/data/1849635/000114036124019745/ny20026576x1_s1.htm
This filing is going to further dilute the public shareholders in a very thinly traded stock
Link to tweet
The stock has been as low as $26.83 today.
I am looking forward to reading the Form s-1 and 46 pages of risk factors. This will be fun to watch