More than half of Trump Media’s cash on hand came from selling $450 million worth of shares to a small New Jersey financial firm.
Over the course of last year the Trump Media and Technology Group (TMTG) raised $450 million by selling company shares at a discount to a small New Jersey financial firm that specializes in small- and micro-cap stocks.
The $450 million raised from its stock sales to Yorkville Advisors accounts for roughly 57% of the cash on hand TMTG had at the end of the year. Despite its robust balance sheet, TMTG’s income statement tells the story of a company that, at the moment, is hemorrhaging cash. The company only had $3.6 million in revenue that led to the $400 million in net losses.
The funding from Yorkville was a substantial source of capital for TMTG in a year when it expanded its business beyond its flagship Truth Social platform.
Over the course of the year TMTG sold 20.3 million shares at various prices between $14.31 and $36.98 a share, according to the filing. The filings do not reveal how many transactions took place or when. However, based on the disclosed range of the purchase, it would appear that at least some of TMTG’s stock sales took place around September. In that month TMTG’s share price hit an all-time low of $12.15 before rebounding 323% at the end of October. Its share price now sits at $29.82.
Source: FORTUNE
