Trump Media was down 28% at one point in morning trading at $28.19 after the company filed its first S-1 after merging last month with Digital World Acquisition. The S-1 covers the issuance of 21,491,251 shares. Of those, 14,375,000 will go to investors exercising warrants that were included with Digital World’s units. The remainder will be issued to note holders.
The drop in stock price also coincides with the start of Trump’s criminal trial today in New York City on charges of violating campagin finance laws related to an alleged hush-money scheme, including payments to a porn star and a Playboy model.
Under risk factors, Trump Media said it expects to continue incurring losses “for the foreseeable future.” The company also said it does not currently, and may never, collect, monitor or report certain key operating metrics used by companies in similar industries, meaning it may be difficult to gauge the company’s user growth over time. Additionally, Trump Media’s former independent registered public accounting firm has indicated that the company’s financial condition raises substantial doubt as to its ability to continue as a going concern.
The social media company also cited Donald Trump’s multiple ongoing criminal and civil cases as risk factors that could impact Trump Media’s market performance.
“An adverse outcome in one or more of the ongoing legal proceedings in which (former) President Donald J. Trump is involved could negatively impact TMTG and its Truth Social platform,” the filing states.
Trump Media shares have plunged 65% since the stock’s debut last month on the Nasdaq, when it briefly peaked at $79.38 before spiraling steadingly. Read more.
