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- Trump Media stock has plunged 46% since Trump’s federal hush-money trial verdict.
- The SEC declared Trump Media’s S-1 filing effective, accelerating the stock’s decline.
- Trump Media CEO Devin Nunes expects cash from exercised warrants to fund a TV platform.
Trump Media stock has plunged 46% since former President Donald Trump was found guilty of 34 counts of falsifying business records in his federal hush-money trial last month.
The steady decline in the stock, which owns the Truth Social media company, accelerated this week after the SEC declared the company’s S-1 filing effective.
Trump Media stock fell 6% on Monday, declined by another 10% on Tuesday, and is down another 10% on Thursday.
With the SEC clearing the way for Trump Media’s S-1 filing, more dilution is on the way for current shareholders as millions of warrants are likely to be exercised.
If all warrants covered by the recently approved registration statement are exercised, it would raise about $247 million in cash for the company.
Trump Media CEO Devin Nunes cheered the news in a press release on Tuesday, saying that the cash raised from the exercise of warrants would position the company well to launch a TV streaming platform.
“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,” Nunes said.
Trump Media’s amended S-1 filing also includes a new risk that comes just weeks after former President Donald Trump signed up for TikTok.
“If TMTG disagrees with President Donald J. Trump about the scope of his obligation to use, or first post on, Truth Social, TMTG lacks any meaningful remedy with respect to such disagreement—which could have a material adverse effect on the business and/or operations of TMTG,” the filing said.
Trump has almost exclusively posted on his Truth Social media platform since he was banned from most major social media platforms following the January 6 insurrection.
