The Chief Operating Officer, Andrew Northwall, of Truth Social's parent company, Trump Media & Technology Group Corp., has recently resigned as per a Securities and Exchange Commission filing. The company mentioned it would internally transition his duties after his resignation. Andrew Northwall started working for the company back in December 2021, according to his LinkedIn profile, but no specific details were provided about the circumstances of his resignation.
In addition to the COO's resignation, the regulatory filing also revealed a court ruling where Trump Media was directed to release 785,825 shares to ARC Global Investments II, an early supporter of Digital World Acquisition Corp (DWAC), the SPAC that took TMTG public. This ruling stems from a dispute between ARC and Trump Media over the number of shares owed after the merger with DWAC. The court granted both parties a 30-day period to appeal following its final decision. The court's decision favored ARC, allowing the early investor to receive the shares.
Former President Donald Trump, who holds a 60% stake in Trump Media, recently became eligible to sell his shares after the lock-up period expired. However, he has stated that he has no plans to sell his stake in the company despite the recent events. Truth Social, the social media platform developed by Trump Media after Trump's ban from other platforms, operates out of Sarasota, Florida, and has faced financial challenges with significant losses and minimal revenue generation in the past year. The company faced a net loss of nearly $58.2 million while only making $4.1 million in revenue, as indicated by regulatory filings.
Trump Media's shares have been subject to volatility and labeled as a meme stock by market experts due to online hype and unpredictable price movements. The company went public in March under the name TMTG and experienced a surge in shares to $79.38 when it debuted on the Nasdaq. Recently, the company's stock price hit a record low on the first trading day post the lock-up expiration for Donald Trump, but it saw a slight increase to $16.20 before the market opened on a particular Friday.