Tuesday’s sell-off coincided with a June 18 deadline that could see some of the company’s investors exercise stock warrants.
Late Tuesday, the company announced that the SEC had declared its registration effective “TMTG’s warrants covered by the Registration Statement have now become eligible for cash exercise,” the company announced.
Within minutes of the filing of the 8K announcement, Trump Media stock had fallen more than 15% in after hours trading.
The company also amended its registration statement Tuesday to warn investors that there was little it could do to stop former President Donald Trump from using other social media platforms, beyond the company’s signature Truth Social network.
“If TMTG disagrees with President Donald J. Trump about the scope of his obligation to use, or first post on, Truth Social, TMTG lacks any meaningful remedy with respect to such disagreement,” the amended lines read.
People are cashing out.
It happens a lot after an IPO. First exercise window a lot of sales happen.