The chief operating officer of Truth Social’s parent company has resigned and the company has to hand over nearly 800,000 shares to one of its investors due to a court ruling, as per a regulatory filing. COO Andrew Northwall resigned from Trump Media & Technology Group Corp, and the company plans to transition his duties internally. The SEC filing also revealed that a Delaware court ruled that 785,825 shares of Trump Media must be released to ARC Global Investments II, with the option to appeal within 30 days. Trump Media operates the social media platform Truth Social, which was created by former President Trump after he was banned from Twitter and Facebook following the Jan. 6, 2021, Capitol riot. The company is based in Sarasota, Florida, and has been struggling to raise revenue, losing nearly $58.2 million last year while only generating $4.1 million in revenue.
Trump Media’s stock has been considered a meme stock, attracting interest from individual investors driven by online buzz rather than traditional analysis. The stock has fluctuated over the past few months, with trading driven by less sophisticated investors. The stock hit its lowest level ever last month on the first trading day that former President Trump was free to sell his stake in the company. Trump Media, also known as TMTG, began trading publicly in March, with shares initially reaching a high of $79.38.
Despite the challenges and controversies surrounding the company, shares of Trump Media & Technology rose slightly to $16.20 before the market opened on Friday. ARC Global Investments II has been engaged in a legal dispute with Trump Media over the number of shares owed to them after Trump Media merged with Digital World Acquisition Corp. The court ruled on the matter last month, with the option for both parties to file an appeal within a specified timeframe. The resignation of the COO and the ongoing legal battles have added to the uncertainty surrounding Trump Media and Truth Social, as the company continues to face financial challenges and struggles with revenue generation.
The court ruling and resignation of the COO are the latest developments in the ongoing saga of Trump Media and Truth Social. The company has faced setbacks and controversies since its inception, including financial losses and difficulties raising revenue. The stock has been volatile, attracting attention from individual investors and market experts alike. The resignation of Andrew Northwall and the legal dispute with ARC Global Investments II highlight the challenges facing Trump Media as it strives to establish itself in the competitive social media landscape.
As the company grapples with these issues, it remains to be seen how Trump Media and Truth Social will navigate the future. The resignation of the COO and the court ruling regarding the shares owed to ARC Global Investments II add to the uncertainty surrounding the company. Despite these challenges, shares of Trump Media & Technology rose slightly in trading, indicating that investors are still interested in the company. With former President Trump’s stake in the company now eligible for sale, the future of Trump Media and Truth Social remains uncertain as they continue to navigate the complex world of social media and online investing.
