Things were looking bad enough for social media platform Truth Social (NASDAQ:DJT) before, and the latest news did it no favors whatsoever. In fact, Truth Social is down over 18% in Monday afternoon’s trading as it plans to sell some fresh equity and dilute shares that were already losing ground. Meanwhile, its chief shareholder takes on his latest court case.
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The latest downward plunge for Truth Social came after plans emerged to issue new shares – and plenty of them. In fact, Truth Social plans to offer up another 21.4 million shares of common stock, which will be issuable “…upon the completion of warrants,” according to Securities and Exchange Commission filings.
Truth Social then expects to land a total of $247.1 million by exercising said warrants, which are currently trading on the Nasdaq under the ticker DJTWW. Meanwhile, Truth Social also looks to resell 146.1 million shares, 114.8 million of which belong to Trump himself. However, finding buyers may prove tougher than expected.
More Court Battles
Trump finds himself taking on yet another lawsuit as the Stormy Daniels “hush money” case starts up. These are the earliest stages, though, as the jury selection process is just getting started. That alone may take up to two weeks, reports note, as finding impartial jurors in such a polarizing case will be remarkably difficult, especially in New York City itself.
Meanwhile, once the trial actually kicks in, it’s expected to last as long as eight weeks. The trial has already produced its share of rancor, as the district attorney’s office is already demanding $3,000 in fines levied against Trump because he posted things on social media.
Is Truth Social Stock a Good Buy Right Now?
A look at DJT stock’s last five trading days reveals a volatile situation. It underwent a series of wild changes, including precipitous drops and rallies, but overall, it settled into a downward pattern. DJT stock is down 26.5% over the last five trading days.
