Trump Media Sinks as SEC Declaration May Dilute Existing Holders
- Shares tumble 17% in late trading following announcement
- Ruling lets investors swap warrants for shares in the company
Trump Media, which owns Truth Social, has been volatile since going public earlier this year.
Photographer: Gabby Jones/BloombergThis article is for subscribers only.
Trump Media & Technology Group Corp. sank in late trading after the US Securities and Exchange Commission declared effective a regulatory filing that could dilute shareholders.
The long-awaited clearance lets investors in the firm’s derivatives, known as warrants, swap their holdings for shares in the company which can dilute long-time investors. The social media company that’s mostly owned by former president Donald Trump fell roughly 15% to around $26 in late trading, adding to a 36% slide this month through Tuesday’s close.