Less than a month after the stock went public, they're issuing 15% more shares. Completely shameless cash grab. And they'll do it because Trump's cult will invest in a piece of him, even if that stock will eventually be worthless. Totally rational behavior, right?
Source: CNN
CNN — Trump Media & Technology Group’s stock is tumbling again after the company announced a massive new influx of shares.
A new public stock offering of 21.5 million shares announced Monday would add more than 15% more stock to the publicly available shares of the Truth Social owner. That would substantially devalue existing shareholders’ stakes — including that of former President Donald Trump.
Shares of TMTG (DJT) fell 14% Monday in premarket trading.
Trump currently owns more than 57% of the company’s shares. Unless he were to purchase stock in the new public offering, Trump would own just under half of the company’s publicly traded stock after it issues more shares.
But the company needs money. It has said it has substantial doubt about its ability to continue operating. The company generates little revenue, it’s losing millions of dollars and it is losing many of its users as well.
The stock went flaccid on the news.
Josh Marshall opines.
Imploding.
UPDATE: And closed at $26.61.
