Trump Media & Technology Group announced Tuesday that the Securities and Exchange Commission (SEC) has approved the company's filing to resale certain shares and warrants.
According to Reuters, this approval could generate about $247 million in proceeds for the company.
Trump Media & Technology Group Expects to Generate $247 Million in Proceeds
With its warrants now exercisable, Trump Media & Technology Group expects to enhance its TV streaming services, improve its platform, and explore possible mergers and acquisitions.
Despite this positive development, shares of the company, which operates former President Donald Trump's social media platform Truth Social, dropped by about 14% in after-hours trading due to concerns over potential equity dilution, according to Reuters.
Trump Media & Technology Group Stock
The anticipated proceeds from the sale of these warrants would be added to the company's more than $200 million unrestricted cash.
According to LSEG data, the company's stock has declined 46% since its backdoor listing on the Nasdaq in March, bringing its market capitalization to $5.53 billion.
Additionally, Trump Media noted that an extra $40 million of restricted cash will become unrestricted after the registration statement on Form S-1 becomes effective.
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