Shares of Trump Media & Technology Group Corp (TMGT) fell after the entity filed with the US Securities and Exchange Commission (SEC) to issue 21 million shares.

The parent company of social media platform Truth Social has filed a filing with the SEC File resale registration statement S-1.

Trump shares shame after the announcement

The company's shares ended the day on the stock market down a further 18% in early trading. of SEC registration states:

We are registering the resale by the holders of the Seller's securities named in this prospectus, or their permitted transferees, of an aggregate of 146,108,680 shares of common stock, consisting of:

• 1,133,484 placement shares;
• Up to 14,316,050 Shares of Founders and Anchor Investors;
• 744,020 Conversion Shares;
• 965,125 DWAC Compensation Shares;
• 690,000 TMTG Compensation Shares;
• 6,250,000 Alternative Financing Shares;
• 7,116,251 shares with private guarantees;
• 143,750 Representative Shares; AND
• 114,750,000 shares of President Trump.

This reduces the overall decline to nearly 60% of the starting price for shares of the former President's company. in reported earlier this month, the initial stock had fallen 20% in its first week of trading.

Digital World Acquisition Corp merged with Trump Media in late February in a big splash. The high for the much-hyped stock hit $66.22, so the drop to $26.61 is a disastrous drop ahead of a possible further share issue.

The drop to $52.77 will be costly for the company, but as we reported last week, executives are still getting a sizeable payout in this tumultuous opening.

Key figures at TMGT have been issued promissory notes in the amount of $6.25 million.

That breaks down to $1.15 million for Chief Executive Devin Nunes, $4.9 million for Chief Financial Officer Phillip Juhan and $200,000 for Chief Operating Officer Andrew Northwall.

It will be interesting reading ahead to see if the SEC agrees on the stock issue, and one that will certainly affect TMGT's future.

Image: ideograms.

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