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Former President Donald Trump is poised to receive an additional 36 million shares of Trump Media on Tuesday — an "earnout" bonus worth more than $1.25 billion, at Monday's price.
Shares of Trump Media, which owns the Truth Social app, were trading at around $35 per share midday Monday, about half the price per share they debuted at in March.
But that price is twice the $17.50 benchmark minimum share price, which the DJT ticker has to hit by the close of trading Tuesday, for Trump to become eligible for the extra so-called earnout shares.
That earnout is contingent on the benchmark being hit for 20 trading days within a 30 trading-day period, beginning March 25. Tuesday is the 20th day, and it is very unlikely that DJT will fall below the benchmark price by the end of that day.
Trump Media's share price was down about 1.8% as of 12:17 p.m. ET.
The 36 million additional shares for Trump would be added to the 78.75 million shares he already owns, as the company's majority shareholder.
When the earnout shares are added to his existing stock, Trump's total stake in Trump Media would be worth more than $4 billion on paper, at $35 a share.
Trump Media has the power to issue a total of 40 million earnout shares, as part of the merger deal that combined it with a publicly traded shell company, Digital World Acquisition Corp.
"Assuming the full issuance of the Earnout Shares, President Donald J. Trump will receive 36,000,000 Earnout Shares," the company said in a securities filing. The filing suggests that some, if not all, of the remaining shares will be issued to Trump Media's executive officers as part of an incentive plan.
https://www.cnbc.com/amp/2024/04/22/djt-trump-set-to-get-millions-more-trump-media-shares.html
Shares of Trump Media, which owns the Truth Social app, were trading at around $35 per share midday Monday, about half the price per share they debuted at in March.
But that price is twice the $17.50 benchmark minimum share price, which the DJT ticker has to hit by the close of trading Tuesday, for Trump to become eligible for the extra so-called earnout shares.
That earnout is contingent on the benchmark being hit for 20 trading days within a 30 trading-day period, beginning March 25. Tuesday is the 20th day, and it is very unlikely that DJT will fall below the benchmark price by the end of that day.
Trump Media's share price was down about 1.8% as of 12:17 p.m. ET.
The 36 million additional shares for Trump would be added to the 78.75 million shares he already owns, as the company's majority shareholder.
When the earnout shares are added to his existing stock, Trump's total stake in Trump Media would be worth more than $4 billion on paper, at $35 a share.
Trump Media has the power to issue a total of 40 million earnout shares, as part of the merger deal that combined it with a publicly traded shell company, Digital World Acquisition Corp.
"Assuming the full issuance of the Earnout Shares, President Donald J. Trump will receive 36,000,000 Earnout Shares," the company said in a securities filing. The filing suggests that some, if not all, of the remaining shares will be issued to Trump Media's executive officers as part of an incentive plan.
https://www.cnbc.com/amp/2024/04/22/djt-trump-set-to-get-millions-more-trump-media-shares.html
