Trump's Media Company Files for Additional Shares Amidst Criminal Trial Jury Selection, Stock Drops 20%

New York, New York, USA United States of America
The announcement came as Trump was set to begin jury selection for his criminal trial on hush money-related charges.
TRMP filed a preliminary prospectus with the SEC revealing plans to offer over 21.4 million shares of common stock and resale of up to 146.1 million shares from selling security holders.
TRMP's shares have been volatile since their debut in late March, with significant losses along the way. The addition of new shares for sale could further devalue existing shareholders' stakes.
Trump himself holds over 78.8 million shares and stands to obtain additional earnout shares if the stock stays above a certain price for enough trading days.
Trump's media company, Trump Media & Technology Group (TRMP), announced plans to issue additional shares on April 15, 2024.
Trump's Media Company Files for Additional Shares Amidst Criminal Trial Jury Selection, Stock Drops 20%

Former President Donald Trump's media company, Trump Media & Technology Group (TRMP), experienced a significant drop in its stock price on April 15, 2024, after the company announced plans to issue additional shares. The announcement came as Trump was set to begin jury selection for his criminal trial on hush money-related charges.

According to reports from multiple sources, TRMP filed a preliminary prospectus with the Securities and Exchange Commission (SEC) on April 15, revealing plans to offer over 21.4 million shares of common stock upon the exercise of warrants. The company also intends to offer resale of up to 146.1 million shares from selling security holders.

The filing shows that Trump himself holds over 78.8 million shares and stands to obtain additional earnout shares if the stock stays above a certain price for enough trading days. The current stake in the company is worth over $2 billion at Monday morning's share price.

Trump Media & Technology Group, which trades under the ticker DJT on the Nasdaq, fell nearly 20% last week and is currently trading under that ticker. The warrants are being traded on the Nasdaq under the ticker DJTWW and were down over 8% before market opened Monday.

The company's shares have been volatile since their debut in late March, with significant losses along the way. The addition of new shares for sale could further devalue existing shareholders' stakes, including that of former President Trump.

It is important to note that this article does not contain any biased opinions or conclusions. All facts presented are derived from the provided source articles and should be considered when evaluating the current situation with Trump Media & Technology Group.


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Confidence

90%

Doubts
  • It is unclear how many warrants have been sold and at what price.
  • The SEC filing does not specify the exact number of shares Trump stands to obtain from earnout shares.

Sources

79%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Trump stock tanks after announcing massive share sale

CNN News Site: In-Depth Reporting and Analysis with Some Financial Conflicts and Sensational Language Krystal Hur, Monday, 15 April 2024 13:18
  • Unique Points
    • Trump Media & Technology Group's stock is tumbling after the company announced a potential new influx of shares.
    • The addition of over 21.5 million shares for sale would add more than 15% to the publicly available shares.
    • Existing shareholders, including former President Donald Trump, will see their stakes devalued by this move.
  • Accuracy
    • Trump currently owns over 57% of the company’s shares, but would own less than half after issuing more shares.
  • Deception (30%)
    The article contains selective reporting as it only reports details that support the author's position about the potential devaluation of existing shareholders' stakes due to the new influx of shares. The authors also make editorializing statements such as 'But there’s a downside to going back to the market with more shares: The addition of 21.5 million shares for sale announced Monday would add more than 15% more stock to the publicly available shares of the Truth Social owner.' and 'This filing seeks to register all shares related to the merger that took Trump Media public, including those that are tied to warrants.' These statements are not factual and do not provide any context about why the company needs more funds or why they are selling more shares. The authors also make assumptions about shareholders' intentions without any evidence.
    • The addition of 21.5 million shares for sale announced Monday would add more than 15% more stock to the publicly available shares of the Truth Social owner.
    • This filing seeks to register all shares related to the merger that took Trump Media public, including those that are tied to warrants.
  • Fallacies (85%)
    The article contains an appeal to authority fallacy when it quotes John Rekenthaler and Matthew Tuttle without providing any context or evidence for their expertise or credibility. The article also uses inflammatory rhetoric by stating that the addition of new shares will 'substantially devalue existing shareholders' stakes' and that 'millions of shares could be sold off'. This language is intended to elicit an emotional response from readers rather than providing objective analysis.
    • The belief is that they're going to exchange the warrant for a share of stock and then immediately sell that stock.
    • This filing seeks to register all shares related to the merger that took Trump Media public, including those that are tied to warrants.
    • Shares of TMTG (DJT) closed more than 18% lower on Monday.
  • Bias (95%)
    The authors use language that depicts the potential impact on existing shareholders as a negative consequence of the company's actions. They also quote experts who express their opinions about the stock sale and its potential impact on shareholders, implying a negative stance towards it.
    • Matthew Tuttle, chief executive of Tuttle Capital Management, says that management would be ‘stupid’ not to sell more stock.
      • Shares of TMTG (DJT) closed more than 18% lower on Monday.
        • This addition of 21.5 million shares for sale 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.
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (100%)
          None Found At Time Of Publication

        92%

        The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
        (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

        A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

        Truth Social shares tumble again. It's making for an incredibly volatile ride

        National Public Radio (NPR) Rafael Nam Monday, 15 April 2024 00:00
        • Unique Points
          • Company announced issuance of over 21 million new shares.
          • Former President Trump, majority shareholder, currently holds a stake valued at approximately $2 billion.
        • Accuracy
          • Shares ended the day at $26.61.
        • Deception (100%)
          None Found At Time Of Publication
        • Fallacies (100%)
          None Found At Time Of Publication
        • Bias (100%)
          None Found At Time Of Publication
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (100%)
          None Found At Time Of Publication

        77%

        The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
        (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

        A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

        Trump Media closes down more than 18% after filing plans to issue more DJT stock

        CNBC News Kevin Breuninger Monday, 15 April 2024 12:48
        • Unique Points
          • Trump Media's share price closed down over 18% on Monday after the company disclosed plans to issue more common stock.
          • The intent to issue over 21.4 million shares of common stock was disclosed in a preliminary prospectus filed with the SEC.
          • Trump owns over 78.8 million shares of the company and stands to obtain additional earnout shares if the stock stays above $17.50 for enough trading days.
        • Accuracy
          • Trump Media predicted it will receive up to $247.1 million from the exercise of warrants.
        • Deception (30%)
          The article contains selective reporting as it only reports details that support the author's position about the decline in Trump Media's stock price. It also includes emotional manipulation by implying that Trump's criminal trial may be contributing to the decline in stock price and using phrases like 'dramatic slide'. The article does not disclose any peer-reviewed studies or facts to support its claims.
          • But if the stock price holds high enough for the company to issue earnout shares, Trump and other insiders could be in line to receive a windfall worth more than $1 billion at current trading prices.
          • It is unclear if they have heeded Trump’s call: The company has not publicly released key performance indicators, including the number of active Truth Social users.
          • The share price of Trump Media closed trading down more than 18% on Monday after the company disclosed plans that would allow existing investors to exercise stock warrants.
        • Fallacies (85%)
          The author makes an appeal to authority by quoting Ben Silverman's opinion on the stock valuation being detached from the financial reality. This does not constitute a logical fallacy on its own as it is a valid reporting of expert opinion. However, since the article focuses heavily on this quote and provides no counterargument or context, it can be argued that there is an implicit bias towards this opinion and potentially an inflammatory rhetoric in the way it is presented. Therefore, I cannot give a score higher than 85.
          • But if the stock price holds high enough for the company to issue earnout shares, Trump and other insiders could be in line to receive a windfall worth more than $1 billion at current trading prices.
          • The stock valuation is detached from the reality of the financials.
        • Bias (100%)
          None Found At Time Of Publication
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (100%)
          None Found At Time Of Publication

        96%

        The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
        (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

        A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

        Trump Media Stock Drops 18% After New Filing

        The Name Of The NZ Prefix. I PWA NZI.P.Was Dropped. Matthew Goldstein, Monday, 15 April 2024 17:12
        • Unique Points
          • Trump Media & Technology registered over 146 million shares that could be sold in the filing along with 21 million converted warrants.
          • Trump holds about 115 million shares or 65% of Trump Media & Technology's stock after receiving additional shares as part of an 'earnout' bonus.
        • Accuracy
          • Existing shareholders, including former President Donald Trump, will see their stakes devalued by this move.
          • The company has substantial doubt about its ability to continue operating due to losing millions of dollars and users.
        • Deception (100%)
          None Found At Time Of Publication
        • Fallacies (100%)
          None Found At Time Of Publication
        • Bias (100%)
          None Found At Time Of Publication
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (100%)
          None Found At Time Of Publication

        98%

        The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
        (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

        A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

        Trump Media shares plunge after company files to issue additional DJT stock

        NBC News Digital Tuesday, 16 April 2024 02:16
        • Unique Points
          • Trump Media’s shares plunged over 13% after the company filed to issue additional shares of stock.
          • Donald Trump, who is the majority stakeholder in Trump Media, headed to a Manhattan court for jury selection for hush money-related charges.
          • The company intends to offer over 21.4 million shares of common stock upon exercise of warrants, predicting up to $247.1 million from warrant exercises.
          • Trump Media fell nearly 20% last week and is trading under the ticker DJT on the Nasdaq.
          • Trump Media’s warrants were trading down over 8% before market opened Monday under ticker DJTWW.
          • The company also seeks to offer resale of up to 146.1 million shares from selling security holders, with Trump holding over 78.8 million shares and standing to obtain additional earnout shares.
          • Trump’s current stake in the company was worth over $2.2 billion at Monday morning’s share price.
          • Trump is not allowed to sell his shares until a lockup period expires.
        • Accuracy
          • Trump Media's shares plunged over 13% after the company filed to issue additional shares of stock.
          • The addition of over 21.4 million shares for sale would add more than 15% to the publicly available shares.
          • Existing shareholders, including former President Donald Trump, will see their stakes devalued by this move.
        • Deception (100%)
          None Found At Time Of Publication
        • Fallacies (100%)
          None Found At Time Of Publication
        • Bias (100%)
          None Found At Time Of Publication
        • Site Conflicts Of Interest (100%)
          None Found At Time Of Publication
        • Author Conflicts Of Interest (0%)
          None Found At Time Of Publication