Apr
Donald Trump is on the verge of another $1 billion Truth Social windfall
Former President Donald Trump stands at the precipice of a significant financial windfall—albeit on paper.
As long as the share price of Trump Media & Technology Group doesn’t dramatically collapse before Tuesday’s market close, Trump is poised to acquire an additional 36 million shares as the owner of Truth Social.
This milestone is set to be achieved after the market concludes trading on Tuesday.
Donald Trump is on the verge of another $1 billion Truth Social windfall
Donald Trump is on the verge of another $1 billion Truth Social windfall
Despite Trump Media’s financial losses and Truth Social’s relatively small size, these new shares would be valued at approximately $1.3 billion based on current prices.
Trump’s net worth has experienced a roller coaster ride since his social media company went public late last month. As the dominant shareholder in a stock often dubbed a “meme stock on steroids,” he remains in the spotlight.
Although Trump Media’s share price has halved since its peak on March 27, it still comfortably trades above levels that would trigger specific performance provisions outlined in the merger agreement.
According to SEC filings, Trump Media has the authority to issue additional shares to pre-merger shareholders, including the former president. This issuance occurs if the dollar volume-weighted average price equals or surpasses $12.50 for any 20 trading days within a 30-day period starting from March 25.
The complete earnout of 40 million shares would activate if the price metric reaches or exceeds $17.50 over the same timeframe.
As Tuesday marks the 20th trading day, Trump Media’s share price has consistently remained above the $17.50 threshold since the clock started on March 25.
Donald Trump is on the verge of another $1 billion Truth Social windfall
Donald Trump is on the verge of another $1 billion Truth Social windfall
Michael Ohlrogge, an associate professor at the NYU School of Law, asserts, “Given how high the share price has been, it seems almost certain to me that the earnout conditions will be satisfied at this point.”
Trump’s dominant stake in this venture is evident. The merger agreement stipulates that he will receive 90% of those earnout shares, translating to an additional 36 million shares.
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From: Tongassf
