Trump Media & Technology Group today said it is highlighting actions its shareholders can take to prevent the lending of their shares by brokerage firms for the purpose of short selling.
The company said its shareholder base primarily consists of retail investors who hold their shares through various brokerage firms.
TMTG said it wants to clarify that if shares are currently on loan by brokerage firms to facilitate short selling, shareholders have the option of asking their broker to recall their shares.
After recalling their shares, long-term shareholders who believe in the company’s future can then hold their stock in a cash account, opt out of any securities lending programs, or move their shares to a Direct Registration account at the company’s transfer agent, Odyssey Transfer & Trust Company.
Since going public on the Nasdaq late last month, Trump Media stock has received intense interest from short sellers. The stock as of early this afternoon is down 57% from its market debut.
Short-selling the stock has been so popular that Trump Media CEO Devin Nunes alleged market manipulation in letters to the Nasdaq and the GOP chairmen of four congressional committees, asking them to investigate. Letters were sent to the chairmen of the Committee on the Judiciary, Committee on Financial Services, Committee on Ways and Means and Committee on Oversight and Reform “regarding potential manipulation of the stock of the company.” The letters allege “naked” short selling of Trump Media shares.
Analysts say the stock is wildly overvalued, relative to the company’s underlying financials. Trump Media lost more than $58 million on $4.1 million in revenue during 2023, according to an 8-K filed earlier this month. Read more.
