Could offering new shares save the struggling company as it loses money rapidly?
The share price of Trump Media and Technology group owned by Donald Trump tumbled on Monday by 18% after the company issued a sale of millions of shares, CNN reported.
The former president, who is currently facing a criminal trial, owns 57% of the shares in the company and is in line to receive more. It accounts for most of his net worth.
The Republican presidential candidate’s company’s stock have been falling for a while now on Nasdaq stock exchange. It closed at $26.61 per share, down 18% from Friday's close and down 66% from its March 26 high of $79.38.
The issuance of shares doesn’t mean they will be readily available at the market. The shares can’t be officially issued until a registration statement from the Securities and Exchange Commission goes into effect.
The majority of shares being sold belong to Trump, however, he cannot sell any Trump Media stock until a six-month lockup period expires or he is granted a waiver by the company’s board.
Trump is currently facing 34 felony counts, alleging that he exaggerated his business records to influence the 2016 presidential elections by paying adult film star Stormy Daniels in a hush money case.
The trial begun on Monday and is expected to continue for a week or more.