Trump Media shares plunged more than 16% on Monday after the company filed for millions more in additional stock.
Monday’s decline comes as Donald Trump sat in a Manhattan courtroom for the first day of his criminal trial where he is facing 34 charges related to a hush money payment to adult film star Stormy Daniels during the 2016 presidential campaign.
Trump Media, the company that owns Truth Social, has plummeted more than 40% in value since debuting on Nasdaq on March 26 under the ticker symbol “DJT.”
The stock had an opening price of $70.90, which soared to a high of nearly $80 on it’s first day.
But it plummeted after the company revealed in a regularity filing with the SEC that it made just $4.1 million in profit last year and lost more than $50 million.
Despite the plummeting stock value, CNBC reported that the company has filed to issue millions of additional shares of stock.
The filing describes a plan to offer more than 21.4 million shares of common stock, issuable “upon the exercise of warrants,” the filing shows, according to CNBC.
Holders of warrants can buy shares at a predetermined price within a certain time frame. Trump Media’s warrants closed at $13.69 on Friday had were down by more than 8% on Monday, CNBC reported.
The company is also seeking a resale of nearly 150 million shares of stock from “selling securityholders.” Trump holds114.8 million of these stocks and stands to gain 36 million “earnout shares” if the stock stays above $17.50 for enough trading days, the outlet noted.
