Trump Media & Technology Group (TMTG) has announced that its S-1 registration statement, which was filed on June 10 for the issuance of up to 14.4 million common shares upon warrant exercise and the resale of 146.1 million shares by selling stockholders, including 78.8 million shares held by Donald Trump, has become effective.
This means that the covered selling securityholders are now allowed to publicly resell the securities. Additionally, TMTG’s warrants covered by the registration statement are now eligible for cash exercise. If all warrants covered by the registration statement are exercised for cash, the company may receive up to an aggregate of approximately $247 million in proceeds. Also, $40 million of restricted cash on the company’s balance sheet will become unrestricted as a result of the registration statement becoming effective.
In a statement, TMTG CEO Devin Nunes said, “Today marks another milestone for Truth Social. With our S-1 declared effective, we’re expecting to be well-positioned to energetically pursue TV streaming, other enhancements to the platform, and potential mergers and acquisitions. With approximately 620,000 retail shareholders supporting our vision, the company looks forward to expanding quickly and robustly.”
Trump Media & Technology Group shares fell 9.82% during Tuesday’s regular session to close at $31.31 and are dropping further after-hours on the news. According to Benzinga Pro, Trump Media & Technology Group shares are down 13.93% after-hours at $26.95 at the time of publication on Tuesday