首页 News 正文

Trump Group's stock price plummets by 18%. The company plans to apply for an additional issuance of over 20 million shares

7zi
4018 0 0

On Monday, April 15th, Trump Media&Technology Group (TMTG, stock code DJT) fell 18.35% to close at $26.61 per share.
Compared to the opening price of $70.90 per share on the first day of SPAC's listing, TMTG has fallen by over 62%; Compared to the closing price of $49.95 on the day before listing, it has fallen nearly 47%. At present, the total market value of the company is about 3.6 billion US dollars, far below the nearly 6 billion US dollars touched last month.
On the news front, TMTG disclosed its plan to issue additional common shares in a document submitted to the US Securities and Exchange Commission (SEC). The document shows that the company plans to apply for the issuance of 21491251 shares (approximately 21.5 million shares) and 4061251 warrants.
In addition, the company mentioned that existing shareholders may resell up to 146108680 shares (over 146 million shares) of common stock in the future, of which 114750000 shares (approximately 115 million shares) are from former US President Donald Trump. It is understood that Trump owns approximately 78.8 million shares of TMTG common stock in the company.
According to the document, if the trading volume weighted average price (VWAP) of ordinary shares exceeds $17.50 for 20 out of 30 consecutive trading days within three years, Trump will acquire 36 million "Earout" shares, which will increase Trump's stock count from 78.8 million to around 115 million.
Peter Byrne, a securities lawyer specializing in corporate mergers at law firm Cooley LLP, stated that these treaties are "fully compliant with the standards.". Bankers and lawyers also told the media that the document did not indicate an urgent intention to sell, but it did clear the way for Trump to sell shares after the lockdown period expired.
In October 2021, Trump founded Trump Media Technology Group TMTG and launched "Real Social" in early 2022, attempting to compete with social media giants. However, according to data from research institutions, "Real Social" had approximately 5 million active users in February this year, which is far from mainstream social media platforms in the United States.
The documents at the beginning of the month also showed that the company's revenue for 2023 was only $4.1 million, while the net loss reached $58.2 million. Verity Research Director Ben Silverman stated that the valuation of TMTG's stock is clearly disconnected from its financial condition.
Analysis suggests that the overestimation of TMTG is largely due to Trump's "celebrity effect", and investing in TMTG is more like a political statement. This allows supporters of Trump to drive up stock prices, but also attracts short sellers.
In addition, Trump's potential selling and cashing out could also lead to a significant drop in stock prices. During the day, Trump's "sealing fee" case was heard at the Manhattan Criminal Court and jury members were selected. According to American media, the trial will take place four days a week and may last for eight weeks.
CandyLake.com 系信息发布平台,仅提供信息存储空间服务。
声明:该文观点仅代表作者本人,本文不代表CandyLake.com立场,且不构成建议,请谨慎对待。
您需要登录后才可以回帖 登录 | 立即注册

本版积分规则

  •   苹果知名分析师郭明錤周四(10月31日)在社交媒体上发文表示,苹果明年可能会减少对芯片制造商博通Wi-Fi芯片的依赖,并推出自己的处理器。   郭明錤在社交媒体平台X上写道,“在2025年下半年的新产品(例如iPh ...
    uturn
    前天 14:42
    支持
    反对
    回复
    收藏
  •   10月30日,小鹏汽车生态企业小鹏汇天宣布,旗下分体式飞行汽车“陆地航母”即将亮相2024中国航展,11月12日将在中国航展第二展区(斗门莲洲)进行全球首次公开飞行,同时“陆地航母”也将在珠海国际航展中心8号 ...
    yxtianyouyou
    3 天前
    支持
    反对
    回复
    收藏
  •   交易所监管文件显示,当地时间11月1日,亚马逊创始人杰夫·贝索斯拟出售约1635万股亚马逊股票,预计套现约30.5亿美元。今年7月,贝索斯已申请额外出售约2500万股亚马逊股票,按当时股价计算可套现约50亿美元。 ...
    blueskybb
    昨天 09:27
    支持
    反对
    回复
    收藏
  •   近日,凯撒海湾目的地(山东)运营管理有限责任公司(简称“凯撒海湾”)与携程旅悦集团签署战略合作协议,双方将围绕“海上目的地运营”、“旅游产品与服务创新”、“研学旅行”、“日韩及海外旅游市场开拓”等 ...
    llyyy2008
    昨天 11:01
    支持
    反对
    回复
    收藏
7zi 新手上路
  • 粉丝

    0

  • 关注

    0

  • 主题

    0