The U.S. SEC has declared the effectiveness of Trump Media & Technology Group Corp.’s registration statement on Form S-1, allowing certain securityholders to resell their securities and exercise warrants covered by the registration statement. With this news, shares of TMTG have fallen 9.82% during Tuesday’s regular session and are down further after-hours at $26.95, a 13.93% drop from its closing price of $31.31.
TMTG CEO Devin Nunes expressed his excitement about the effective registration statement in a statement, saying that it marks “another milestone for Truth Social.” The company plans to use its proceeds to pursue TV streaming, enhancements to its platform, and potential mergers and acquisitions with approximately 620,000 retail shareholders supporting its vision.
The registration statement allows selling securityholders to publicly resell their securities and for TMTG’s warrants covered by the registration statement to be exercised for cash. If all warrants are exercised for cash, the company may receive up to an aggregate of approximately $247 million in proceeds. Additionally, $40 million of restricted cash on the company’s balance sheet will become unrestricted as a result of the registration statement becoming effective.
