Trump Media Plunges After Registering Shares, Warrants for Sale

Trump Media Plunges After Registering Shares, Warrants for Sale

(Bloomberg) — Former president Donald Trump’s social media startup sank as much as 20% after the company registered its shares for potential resale.

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Trump Media & Technology Group Corp., parent of Truth Social, filed to register shares including those held by insiders and linked to warrants. The move is the first step toward opening the door for Trump and other insiders to get approval from the company’s board to begin capitalizing on their stakes.

As many as 146 million common shares were registered, 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. Warrants, which are tied to the stock and can be exchanged with cash for shares of the company, sank 12% to $12.10 as of 8:41 a.m. in New York.

A filing to register shares for resale — in addition to potentially selling more stock — is normal for blank-check deals, which Trump Media completed last month to be a public company. It is worth noting that the filing does not necessarily indicate that a sale has begun, or will occur in the future.

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