Republican presidential candidate and former US President Donald Trump gestures as he arrives at Trump Tower on the day of his trial on charges of falsifying business records to hide money he paid in 2016 to marry porn star Stormy Daniels Silence, in New York City, USA, April 19, 2024.
Eduardo Munoz | Reuters
Former President Donald Trump received 36 million more shares of Trump Media Technology Group on Friday, according to a new disclosure filed Tuesday with the Securities and Exchange Commission.
The shares were part of a contractual “earnout bonus” that Trump’s eponymous media company agreed to shortly before its IPO in March.
At Tuesday’s closing price of $49.93, Trump’s newly allocated shares were worth about $1.8 billion, although he is barred from selling them until the end of a six-month lock-up period.
The additional shares increase Trump’s total stake in the newly listed company to 114,750,000. At Tuesday’s closing price, its paper value was over $5.7 billion.
The lucky break for Trump is that Trump Media’s stock price is up 50% in the last seven days, after falling sharply for weeks following its Nasdaq debut on March 26.
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The shares were transferred to Trump as a reward for keeping the stock price above $17.50 for 20 trading days.
The contract was originally written with three benchmarks spanning 36 months and awarded in chunks of 9 million shares each. However, the share price was never in serious danger of missing out, and so all three tranches, a total of 36 million shares, were allocated at once.
Trump Media representatives had declined to confirm or deny that Trump would receive the stock when contacted by CNBC last week, but Tuesday’s simple filing serves as confirmation.
The former president was already the largest shareholder in the company that owns the Truth Social app, a social media platform created to accommodate Trump and his supporters after he left Twitter following the January 6, 2021 attack and Facebook was banned from the Capitol.
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2024-04-30 22:57:39
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