(Reuters) – Trump Media & Technology Group said on Tuesday the Securities and Exchange Commission has declared effective the company’s application to resell certain shares and warrants, potentially generating about $247 million in proceeds.
The company said that with its warrants now exercisable, it expects to be “well positioned” to pursue TV streaming, other platform enhancements and potential mergers and acquisitions.
Shares of the company, which owns former US President and Republican presidential candidate Donald Trump’s social media platform Truth Social, fell about 14% in extended trading due to potential dilution.
Trump Media said proceeds from the potential sale of these warrants would complement the more than $200 million in unrestricted cash it currently retains.
The company added that an additional $40 million of restricted cash on its balance sheet will become unrestricted as a result of the effectiveness of its registration statement on Form S-1.
The company’s shares are down nearly 80% this year as of last close, and its market capitalization is $6.14 billion, according to LSEG.