Former President Donald Trump has qualified to receive up to 36 million additional shares of Trump Media stock, worth $1.17 billion as of Tuesday’s close.
An earn-out bonus with the potential for future windfall income if the company meets its financial goals is a provision of its merger agreement with Digital World Acquisition Corp., the company said. SEC filing. Trump would be entitled to receive additional shares if the stock price exceeds a certain threshold for 20 out of 30 business days.
Trump already owned 78.75 million shares, or 60% of the company’s stock. Although DJT’s stock price has plummeted in the weeks since it appeared on the stock market, the stock price remains well above its $17.50 per share benchmark. 20 business days. The lowest price since going public on March 26th was $22.84 per share on April 16th.
More than $1 billion has flowed into Trump’s fortune, and he is on trial in Manhattan on 34 counts of falsifying business records.
Live updates from the Trump trial:Pecker will be cross-examined and a gag order could be handed down on the seventh day.
trump media stock price
At the start of trading on April 25, Trump Media & Technology Group stock had risen to $37, an increase of 3.73% from its previous close.
How Truth Social’s parent company went public
Trump founded his social media company in 2021 after being kicked off other major platforms in the wake of the Jan. 6 riot at the U.S. Capitol.
Trump Media went public on the Nasdaq on March 26, 2024 through a merger with a shell company, Digital World Acquisition Corporation (a special acquisition purpose company, or SPAC). The merger was announced in 2021.
Mr. Trump’s stock market debut was a flashy one, with Trump Media stock soaring with the support of, and to the delight of, his loyal MAGA supporters.
But regulatory filings show the company was operating at a loss in 2023, with losses of more than $58 million on revenue of about $4 million. Accounting firm BF Borgers CPA PC said in a letter to Trump Media shareholders that the operating loss “raises significant doubts about the company’s ability to continue as a going concern.”
Experts told USA TODAY they expect the stock price volatility to continue.
Trump’s lawsuit comes with a high cost
Trump Media’s stock price has fallen significantly since going public, dropping more than 60% by April 15, the first day of the first of four criminal trials.
Trump was also ordered to pay a total of $537 million in two civil lawsuits earlier this year, both of which he is appealing.
At one point, Trump Media stock was a potential source of funding to make these payments.
But in April, he posted a reduced bond of $175 million, with California billionaire Don Hankey as surety, to prevent his assets from being seized in a fraud case.
Contributors: Bailey Schultz, Jessica Ginn, Janine Santucci.america today
