Trump Media & Technology Group Corp. (NASDAQ:DJT), a company specializing in computer programming and data processing, announced on Thursday, August 22, 2024, a share repurchase program and a tax remittance to the U.S. Internal Revenue Service.
The board and audit committee authorized the repurchase of 128,138 shares of common stock from certain executive employees at $22.70 per share. The company will pay $2,908,708, including penalties and interest, related to the March 7, 2024 issuance of TMTG Executive Promissory Notes.
In other developments, Donald J. Trump, Jr., a director at Trump Media, was appointed as a director and honorary co-chair of Trump Vance 2025 Transition, Inc., a nonprofit preparing for the presidential transition after the 2024 election. Another director, Ms. McMahon, was also appointed as a co-chair of the same organization.
Trump Media also provided updates on various legal proceedings. A lawsuit filed by Robert Lowinger against Rocket One Capital, LLC and others alleges that profits from sales of Digital World's securities must be disgorged under Section 16(b) of the Exchange Act. The case, initially filed in New York, has been transferred to the Southern District of Florida.
The company is embroiled in litigation concerning a services agreement related to intellectual property rights. United Atlantic Ventures (UAV) asserts rights to appoint directors and claims a $1.0 million expense reimbursement. Private TMTG received threats of legal action from UAV, which filed a complaint in the Chancery Court seeking declaratory and injunctive relief.
Additionally, a lawsuit in Florida involves ARC Global Investments II, LLC and Patrick Orlando, with Digital World alleging attempts by Mr. Orlando to secure personal benefits, breaching fiduciary duty. The lawsuit seeks damages and a declaratory judgment affirming the conversion ratio for Digital World Class B common stock into Class A stock upon completion of a business combination.
In Delaware, ARC filed a lawsuit against Digital World, claiming an alleged breach of the Digital World Charter regarding share conversion ratios. The court denied ARC's motion to expedite the case and affirmed that Digital World's public disclosures mitigated the risk of irreparable harm.
In other recent news, Trump Media & Technology Group (TMTG) has been making strides in the media sector with the phased rollout of its new streaming platform, Truth+. The company has launched its custom-built content delivery network (CDN), enabling linear TV streaming for web users on its social media platform, Truth Social.
This marks a pivotal step in TMTG's media expansion efforts. The company has also reported a first-quarter net loss of $327.6 million due to non-cash expenses prior to its merger.
However, TMTG anticipates receiving over $69.4 million from cash exercises of warrants, potentially bringing in up to $247 million if all warrants under the registration are exercised.
This could also release $40 million of restricted cash on TMTG's balance sheet. In addition to these developments, TMTG has been actively investigating potential market manipulation of its stock.
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