Trump Media & Technology Group (NASDAQ:DJT) announced this morning that it had received more than $105 million from the cash exercise of warrants between June 20 and July 1. That’s up from the $69.4 million it had initially expected to receive between June 20 and 21.
Additionally, $41 million of TMTG’s restricted cash has become unrestricted, increasing the company’s cash balance to over $350 million.
The company previously announced that it could receive up to a maximum of $247.1 million from the exercise of the warrants. In the offering filing, TMTG noted that it would register up to 14.37 million shares while selling stockholders were looking to offload up to 146.10 million shares. Several executives will participate in the resale, including CEO Devin Nunes and CFO and Treasurer Phillip Juhan.
Upon the exercise of all the warrants and the issuance of alternative financing shares, there would be 204.44 million shares of DJT stock outstanding.
DJT Stock: Trump Media Raises $105 Million From Warrants
At the same time, shareholders will face dilutive effects from the additional shares outstanding. With more shares on the table, each share’s ownership percentage of the company will fall.
With the proceeds, TMTG will “execute our business plan, including for working capital, possible acquisitions and other general corporate purposes.”
TMTG previously had substantial doubt about its ability to continue as a going concern as of Dec. 31, although this doubt was alleviated in the company’s first-quarter earnings. As of March 31, TMTG believes that it has enough working capital to fund operations for at least one year. During the first quarter, TMTG’s operating activities used up $9.31 million of cash while its financing activities provided $280.47 million of cash.
TMTG now has a solid cash pile. Now, it just needs to figure out a way to make money. Its first-quarter net loss tallied in at $327.59 million, while revenue was just $770,500. A year ago, its net loss was $210.30 million, while revenue was $1.12 million.
On top of that, DJT shareholders should brace themselves for volatile price action as the November election approaches.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
