Trump Media shares plunge after company files to issue additional DJT stock

• Shares of Trump Media plunged more than 17% in the pre-trading hours after the company filed to issue millions of additional shares of stock.
• The dramatic slide came as Donald Trump headed to a Manhattan court to begin jury selection for his criminal trial on hush money-related charges.
• Trump is the majority stakeholder in Trump Media, which created the Truth Social app and trades under the stock ticker DJT on the Nasdaq.

Shares of Trump Media plunged more than 17% in premarket trading Monday after the company filed to issue millions of additional shares of stock.

Trump Media's dramatic slide came as Donald Trump headed to a Manhattan court to begin jury selection for his criminal trial on hush money-related charges. Trump is the majority stakeholder in the company.

Trump Media, which created the Truth Social app and trades under the stock ticker DJT on the Nasdaq, fell nearly 20% last week.

The company's intent to issue more common stock was made public Monday morning in a "preliminary prospectus" filed to the Securities and Exchange Commission. The shares cannot be issued until a registration statement with the SEC goes into effect.

The filing describes a plan to offer more than 21.4 million shares of common stock, issuable "upon the exercise of warrants," the filing shows. Stock warrants give their holder the ability to buy shares at a predetermined price within a certain time frame.

The closing price of Trump Media's warrants was $13.69 as of Friday, according to the filing. The warrants are being traded on the Nasdaq under the ticker "DJTWW." That ticker was down more than 8% before the market opened Monday.

The company also seeks to offer the resale of up to 146.1 million shares of stock from "selling