Trump Media Shares Slide After Resale Prospectus Filing
Trump Media & Technology Group Corp (DJT) shares are experiencing a pullback in Monday's after-hours session following the company's filing of a prospectus for the resale of nearly 38 million shares of common stock.
The prospectus, filed after the market closed on Monday, relates to the resale of 37.97 million shares of common stock by Trump Media, the parent company of social media platform Truth Social. These shares may be issued and sold to Yorkville from time to time, pursuant to a purchase agreement entered into on July 3rd. Under this agreement, Yorkville committed to purchasing up to $2.5 billion worth of Trump Media common stock.
As of July 1st, Trump Media had approximately $350 million in cash and zero debt on its balance sheet.
This news comes after a turbulent weekend for Trump Media. On Saturday, former President Donald Trump was the target of an assassination attempt at a rally in Pennsylvania. A bullet grazed his ear, and he was treated at a local hospital before being released later that night. Following this incident, Trump Media shares closed Monday up more than 31%.
Furthermore, Trump's odds of winning the 2024 presidential election reportedly surged to an all-time high after he survived the assassination attempt. On Monday, he also selected Sen. J.D. Vance (R-Ohio) as his vice-presidential running mate, further boosting Trump-linked stocks.
Despite these positive developments, Trump Media shares are currently down 10.47% in after-hours trading at $36.33.