(CNBC) The stock price of Trump Media plunged by more than 17% in after-hours trading Tuesday after the Truth Social app owner said its registration of additional shares had been declared effective by the Securities and Exchange Commission.
Trump Media, which trades under the DJT ticker, had seen its share price slump by nearly 10% during the regular trading day.
Trump Media in a prospectus filed Tuesday with the SEC said that up to 14,375,000 additional shares would be issuable upon the exercise of those warrants.
The company noted there could be “a significant decline in the public trading price” of the stock if warrant holders sold their shares or there was a “perception that these sales could occur.”
But Trump Media said that existing shareholders who sold at a lower prices after the registration “could still “experience a positive rate of return on the shares … due to the lower price per share” when they purchased them.
