DJT Stock Alert: Trump Media Receives $105 Million from Warrants

Trump Media and Technology Group (NASDAQ:DJT) announced this morning that it raised more than $105 million from warrant exercises between June 20 and July 1, more than the $69.4 million it had originally expected to raise between June 20 and 21.

In addition, $41 million of TMTG’s restricted cash was released, increasing the Company’s cash balance to over $350 million.

The company had previously announced that it could raise up to $247.1 million from the exercise of the warrants. In the offering document, TMTG stated that it would register up to 14.37 million shares, while the selling shareholders were seeking 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.

After exercise of all warrants and issuance of alternative financing shares, 204.44 million DJT shares would be outstanding.

DJT shares: Trump Media raises $105 million through warrants

At the same time, shareholders will face a dilution effect from the additional shares issued. With more shares on the table, each share’s ownership percentage in the company decreases.

TMTG will use the proceeds to “implement our business plan, including working capital, potential acquisitions and other general corporate purposes.”

TMTG previously had significant doubts about its ability to continue as a going concern as of December 31, although these doubts were allayed by the company’s first quarter results. As of March 31, TMTG believes it has sufficient working capital to fund operations for at least one year. During the first quarter, TMTG used $9.31 million in cash for its operating activities, while its financing activities generated $280.47 million in cash.

TMTG now has a solid cash balance. Now the company just needs to find a way to make money. The net loss in the first quarter was $327.59 million, while revenue was only $770,500. A year ago, the net loss was $210.30 million, while revenue was $1.12 million.

In addition, DJT shareholders should prepare for volatile price movements in the run-up to the November elections.

At the time 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 author and are subject to InvestorPlace.com Publishing guidelines.

At the time of publication, the editor in charge did not hold any positions (either directly or indirectly) in the securities mentioned in this article.