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Trump stands to get millions more shares if Trump Media trades above $17.50 through Tuesday’s session.
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This would see the former president awarded an additional $1.3 billion in stock.
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The stock has risen slightly this week, trading at around $34 on Tuesday.
Trump Media and Technology All it takes is managing not to collapse on Tuesday for former President Donald Trump to receive an additional $1.3 billion in stock in parent company Truth Social.
Company insiders are set to receive millions of free shares, 36 million of which will go to majority shareholder Trump. Bloomberg reported. The stock must trade above $17.50 by the end of the day for the reward to kick in. The stock was trading at around $34 per share as of Tuesday morning.
The bonuses to be paid to Trump Media executives are part of the special purpose acquisition agreement that took the company public, which stipulates that the stock must trade above the 17.50 mark $ for 20 days in a 30-day period, according to Bloomberg.
That would represent a $1.3 billion windfall for Trump, even though he and other insiders remain unable to cash in and sell shares due to a six-month lock-up period, although Trump Media has filed to authorize the sale of shares within this period.
Even though the benefits are still only on paper, the Earnout bonuses are a boon for Trump, who saw the value of his stocks plummet through April.
When Trump Media debuted on the market in late March, the stock peaked before crashing nearly 40% in a matter of weeks. The massive fall erased more than 3 billion dollars from his windfallvalued at over $5 billion at its peak.
But that didn’t remove willing buyers, a cohort made up of Trump active supporters on Truth Socialthe firm’s social media platform.
Last week, Devin Nunes, CEO of Trump Media, lashed out at short sellers for helping to send the stock tumbling. The complaint prompted a fierce response from Citadel Securities, cited in a letter from Nunes:
“Devin Nunes is the proverbial loser trying to blame ‘naked short selling’ for his stock price drop,” the company said.
Read the original article on Business Insider
