Why Trump Media & Technology Group Shares Plunged Today
Shares of Trump Media Technology Group (NASDAQ: DJT) fell 18.4% on Monday, after the Donald Trump-owned social media company announced plans to allow existing investors to exercise stock warrants far ahead of their previously agreed-upon schedule.
In an SEC filing Monday morning, Trump Media Technology Group revealed plans to allow the future potential sale of millions of shares currently restricted under the terms of warrants held by investors that can be converted into shares of common stock. Trump Media Technology Group also plans to allow shares held by company insiders to be sold ahead of schedule. The filing notably includes all shares held by the former president, whose roughly 57% ownership stake in the company remains subject to a lockup period that restricts Trump from selling his shares for approximately another five months. Trump's social media network, Truth Social, is the company's primary asset.
For perspective, Trump Media Technology Group only just became a publicly traded company late last month, completing its SPAC merger with so-called blank-check company Digital World Acquisition Corp. on March 25.
Source Fool.com
