SARASOTA, Fla. - Trump Media & Technology Group Corp. (NASDAQ: DJT), the parent company of Truth Social, announced today that it has raised over $105 million through the cash exercise of warrants from June 20 to July 1, 2024.
The company also stated that approximately $41 million of previously restricted cash has become unrestricted, bringing its total cash reserves to more than $350 million, with no debt reported on its balance sheet as of the end of this period.
The warrant exercise period began following the Securities and Exchange Commission's (SEC) declaration of effectiveness for the company's registration statement on June 18, 2024. This allowed TMTG to potentially receive up to $247 million in aggregate proceeds if all warrants covered by the registration are exercised for cash. Investors holding warrants were advised to contact their registered brokers to initiate the exercise process.
The registration statement and the related prospectus are available to the public on the SEC's website, and copies can be obtained from Broadridge Financial Solutions (NYSE:BR). The registration of securities does not necessarily indicate that individual security holders are planning to sell their shares.
In fact, TMTG's directors, officers, affiliates—including President Donald J. Trump—and certain other security holders are currently under a lockup period or are otherwise restricted from selling their shares.
This recent development for TMTG comes as the company continues to position itself as a promoter of free speech on the internet, offering a platform for users amid what it describes as "Big Tech's assault on free speech." Truth Social was launched with the intention of providing a "safe harbor for free expression."
The press release emphasized that it does not constitute an offer to sell or a solicitation of an offer to buy any securities and that the sale of these securities would not be lawful in any state or jurisdiction without registration or qualification under the applicable securities laws of such state or jurisdiction.
The information reported is based on a press release statement from Trump Media & Technology Group Corp.
In other recent news, Trump Media & Technology Group Corp. (TMTG) anticipates receiving over $69.4 million from warrant exercises, with the potential to garner up to approximately $247 million if all warrants under the registration are exercised for cash.
The effective registration statement will also release $40 million of restricted cash on TMTG's balance sheet. These developments come after the SEC declared the company's registration statement effective, which allows for the resale or initial issuance of certain shares of common stock and warrants.
In addition, TMTG reported a significant increase in its net loss for the first quarter, totaling $327.6 million, attributed to non-cash expenses faced by the company prior to its merger. The company has also been investigating potential market manipulation of its stock, as detailed in a letter to U.S. House Committees.
Lastly, TMTG has completed its live TV streaming platform's research and development phase, planning to introduce the streaming content in phases. These are among the recent developments involving TMTG.
InvestingPro Insights
Amidst the financial developments reported by Trump Media & Technology Group Corp. (NASDAQ: DJT), the parent company of Truth Social, market performance data provides additional context to the company's current economic standing. Over the past week, DJT has seen a modest uptick in its price total return of 1.22%, indicating some positive investor sentiment in the short term. The one-month total return is slightly lower at 0.39%, reflecting a cautious approach from the market over a longer period.
Looking at a broader timeframe, the three-month and six-month price total returns show a contraction at -3.46% and -3.02%, respectively. This suggests that while recent developments may have sparked some interest, the overall trend in the medium term has been negative.
Year-to-date, the price total return has further declined to -3.78%, which aligns with the one-year price total return showing a decrease of -1.49%. These figures highlight the challenges the company has faced in maintaining its market value over the past year.
With an average daily volume of 110.74 million over the last three months, there is substantial trading activity around DJT, which could indicate investor interest in the company's strategic moves, including the recent cash exercise of warrants.
Investors seeking to understand the implications of these metrics and how they might influence investment decisions can look to InvestingPro for further insights. There are 17 additional "InvestingPro Tips" available that can help navigate the complexities of market data and investment strategies. Remember to use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, unlocking a wealth of information and analytics to guide your investment choices.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.