DJT stock tumbles after Trump files for the sale of nearly 115 million ...

By Tomi Kilgore

Trump Media files for the issuance and sale of shares that total more than triple the public float

Shares of Trump Media & Technology Group Corp. tumbled Monday, after the social-media platform filed to issue new shares, and for current stockholders to sell off nearly 150 million shares.

The company's (DJT) S-1 filing with the Securities and Exchange Commission includes the potential sale of up to 114,750,000 shares held by former President Donald J. Trump.

That amount includes the 78,750,000 common shares he received after the merger with special-purpose acquisition company (SPAC) Digital World Acquisition closed on March 25. It also includes 36 million in "earnout shares," which may be issued to Trump depending on how the stock performs over the next three years.

But even with the S-1 filing, Trump's shareholdings are subject to a "lock-up period," which means they can't be sold until Sept. 25.

The stock, in which the ticker is the initials of the former president, sank 14.5% in morning trading, to put it on track for the lowest close since Jan. 19. The stock has now plunged 44.2% since March 25, and plummeted 57.9% since it closed at a post-merger high of $66.22 on March 27.

The stock's selloff also comes on the day that the first criminal trial against Donald J. Trump is set to begin, as the former president faces charges that he tried to cover up hush-money payments made to adult-film star Stormy Daniels.

Read: Trump's 'DJT' stock dives to lowest close since Ron DeSantis dropped out.

Also read: Why shorting Trump's DJT stock could cost you a 500% fee.

In total, the S-1 is for the issuance of up to 21.5 million new common shares, and for the sale from time to time of up to 146.1 million shares held by selling stockholders. The company would not receive any proceeds from the sale of shares by stockholders.

"The number of shares of common stock being offered for resale in this prospectus exceeds the number of shares of common stock constituting our public float," the company said in an S-1 filing with the U.S. Securities and Exchange Commission.

The resale of stock represents about 256% of the current public float, or shares currently available for the public to trade, and about 107% of the outstanding shares as of Jan. 31.

The stock has plummeted 55.1% so far in April, which means the shares currently owned by Trump have lost $2.68 billion in value this month. The shares he holds are now valued at about $2.2 billion.

-Tomi Kilgore

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04-15-24 1030ET