Trump Media And Technology Group (DJT) Expects Its Unrestricted Cash To Swell To $240 Million And Receive An Additional $69.4 Million From The Cash Exercise Of Its Warrants

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In a major boost to its liquidity, Trump Media and Technology Group (NASDAQ: DJT), the parent entity of the Truth Social platform, now expects to receive a significant sum from the cash exercise of its warrants as well as unlock another chunk of the restricted cash on its balance sheet.

On the 18th of June, the SEC declared Trump Media and Technology Group's amended Form S-1 effective, which paved the way for the company to register up to 14.375 million common shares that are issuable upon the exercise of up to 4.061 million of its warrants.

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The filing also permits Trump Media and Technology Group insiders to sell up to 146.108 million common shares after the expiration of the lock-up period, which is the earliest of either the 25th of September, 2024, and the date on which the stock price equals or exceeds $12 per share for 20 trading days within a 30-trading day window that commences on the 22nd of August, 2024.

Today, in a fresh press release, Trump Media and Technology Group has announced that it now expects to receive $69.4 million in proceeds from the cash exercise of its warrants. For the benefit of those who might not be aware, these warrants carry an exercise price of $11.50 per share. As long as the stock trades above this exercise price, it makes financial sense for investors to exercise their warrants in order to obtain the underlying common shares.

Additionally, $40 million in restricted cash sitting on the balance sheet of Trump Media and Technology Group has now become unrestricted following the SEC's declaration of effectiveness of the company's amended Form S-1. This action boosts Trump Media's total unrestricted cash to $240 million.

The company's press release notes:

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