(Corrects movement of shares to “down 46%” from “down approximately 80%” and market capitalization to “$5.53 billion” from “$6.14 billion” in paragraph 6)
(Reuters) – Trump Media and Technology Group said on Tuesday that the Securities and Exchange Commission has declared effective the company's request to resell certain shares and warrants, which could give it proceeds of about $247 million.
The company said that with its orders now able to be exercised, it expects to be “well positioned” to pursue streaming TV, other improvements to the platform and potential mergers and acquisitions.
Shares of the company that owns former US President and Republican presidential candidate Donald Trump's social media platform, Truth Social, fell about 14% in extended trading due to potential stock dilution.
Trump Media said proceeds from the potential sale of these warrants would supplement the more than $200 million in unrestricted cash it currently holds.
The company added that an additional $40 million of restricted cash on its balance sheet will become unrestricted as a result of the entry into force of its Form S-1 registration statement.
The company's stock has fallen 46% since closing its backlisting on the Nasdaq in March, and it has a market capitalization of $5.53 billion, according to LSEG data.
