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Trump Media shares drop 10% as DJT stock slide accelerates

Trump Media and Technology Group, which trades under the ticker "DJT" and is behind the Truth Social platform, saw its shares drop 9.8% Tuesday as the stock's total slide hit nearly 40% since former President Donald Trump's conviction in New York last month. File Photo by Will Oliver/EPA-EFE
Trump Media and Technology Group, which trades under the ticker "DJT" and is behind the Truth Social platform, saw its shares drop 9.8% Tuesday as the stock's total slide hit nearly 40% since former President Donald Trump's conviction in New York last month. File Photo by Will Oliver/EPA-EFE

June 18 (UPI) -- Trump Media and Technology Group's shares dropped nearly 10% on Tuesday, bringing the stock's total slide to nearly 40% since former President Donald Trump -- the company's majority shareholder -- was convicted last month.

In addition to falling 9.8% Tuesday to close at $31.31 on high trading volume of 7.52 million shares, Trump Media shares plummeted more than 17% in after-hours trading to close at $27.08.

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The stock -- which trades under the ticker "DJT" and is behind the Truth Social platform -- closed at a market cap of about $5.5 billion on Tuesday, which coincided with a June 18 deadline that could allow some investors to exercise stock warrants.

Trump Media disclosed its plans to offer nearly 21.5 million shares of common stock issuable "upon the exercise of warrants," according to an April 15 filing with the Securities and Exchange Commission.

Trump Media officials, who have blamed short sellers and stock manipulators for the ongoing stock slide, are urging authorities to seek criminal prosecution if any illegal short-selling is confirmed.

On Tuesday, the company also amended its registration statement to warn investors that Trump would be allowed to use other social media platforms beyond Truth Social after the former president amassed millions of followers since joining TikTok.

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"If TMTG disagrees with President Donald J. Trump about the scope of his obligation to use, or first post on, Truth Social, TMTG lacks any meaningful remedy with respect to such disagreement -- which could have a material adverse effect on the business and/or operations of TMTG," the company wrote in an amended statement.

According to Benzinga Pro, Trump Media has seen its stock grow more than 94% in six months. In the first quarter of this year, Trump Media disclosed a net loss of $327.6 million and total revenue of $770,500 in its May earnings report.

Trump was convicted on May 30 in New York on 34 counts of falsifying business documents in an attempt to cover up an affair with adult film actress Stormy Daniels. He denied the affair and pleaded not guilty to all charges.

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