Trump Media’s Cash Injection and Positive Outlook: A Closer Look
On Tuesday, the Trump Media & Technology Group (DJT) saw a 4% drop in its shares after announcing that it had raised over $105 million through the cash exercise of warrants. The fundraising took place 12 days ago, starting on June 20, shortly after the SEC declared the registration of new shares effective. This declaration allowed the issuance of millions of new Trump Media shares via warrants, which let holders buy shares at a predetermined price. While this move generates significant cash, potentially netting around $247 million if all warrants are exercised, it risks diluting the stock’s value by increasing the number of available shares, according to CNBC reports.
In addition to raising funds through warrant exercises, Trump Media disclosed that an additional $41 million of restricted cash had recently become unrestricted. The company now has over $350 million in cash and no debt on its balance sheet. Despite these positive developments, the stock had been on a prolonged sell-off since earlier this year when former President Trump was found guilty of 34 counts of falsifying business records in New York. However, shares partially recovered following Trump’s first debate with President Joe Biden. On Monday, Trump Media announced its inclusion in the Russell 1000 and Russell 3000 indexes, further influencing its market performance.
As of Wednesday premarket, DJT shares were trading lower by 2.80% at $30.84. Market news and data are brought to you by Benzinga APIs. © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved
