Trump Media And Technology Group (DJT) Has Only The Next Few Hours To Force Exercise Warrants Or Risk Losing The Ability To Do So Potentially Forever

Trump Media and Technology Group (NASDAQ: DJT) shares have now fallen to a price level that has virtually eviscerated all of the billions of dollars in paper gains that the former US President recorded since the 15th of December, 2023. Yet, the negative catalysts for the stock keep rearing their head, with a potential force exercise of warrants emerging as the next major flashpoint.

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As we noted in a dedicated post last week, Trump's gigantic 59 percent stake in Trump Media and Technology Group, which corresponds to 114.75 million shares, achieved an early lock-up exit last Thursday as the stock continued to trade above the critical $12 share price. Since then, however, Trump Media shares have faced relentless selling pressure, fueling speculation that the former US President might be paring down his stake even though he publicly committed to not do so.

Meanwhile, as explained in the above X post, Thursday, incidentally, was the last day when Trump Media and Technology Group shares most recently traded above the $18 price level for 20 of the past 30 trading days. The parent entity of the Truth Social platform now has until the tail-end of Tuesday (or very early Wednesday) to force the cash exercise of its remaining warrants.

Should Trump Media and Technology Group opt to force the exercise of these remaining warrants, it can potentially raise some much-needed additional cash. However, the exercise will also result in the issuance of 11.208 million additional shares, and the ensuing dilution can further pressure the embattled stock. If the company eschews this opportunity, it might never get another one where the stock trades above the $18 price level for at least 20 of a running count of 30 trading days.

Bear in mind that Trump Media had last exercised its warrants back in June, when it had managed to raise $69.4 million.

At the time of writing, Trump Media and Technology Group