Trump Media & Technology Group Corp ( DJT ) shares are trading lower Thursday after the United States Securities and Exchange Commission declared effective the company’s registration statement on Form S-1 related to the resale of shares and warrants.

What To Know: On June 10, Trump Media & Technology Group ( DJT ), the company behind former President Donald Trump's Truth Social, filed a prospectus for the issuance of up to 14.4 million common shares upon the warrant exercise and resale of 146.1 million shares by selling stockholders, including 78.8 million shares held by Trump.

"I want to thank SMC for serving as our independent auditor and enabling us to file an Amended Registration Statement, which we hope the SEC will promptly review," Devin Nunes, CEO of Trump Media & Technology ( DJT ), said at the time.

The SEC has now declared the amended registration statement effective. It amends the registration statement filed on April 15 following the company's business combination with Digital World Acquisition Corp.

The amended registration statement allows the covered selling securityholders to publicly resell the securities covered by the registration statement. Trump Media’s warrants covered by the registration statement have also now become eligible for cash exercise. If all warrants are exercised for cash, Trump Media ( DJT ) may receive up to an aggregate of approximately $247 million in proceeds. 

With the effectiveness of the registration statement, Trump Media ( DJT ) will now have $40 million of restricted cash on its balance sheet become unrestricted. The funds would supplement more than $200 million in unrestricted cash the company retains.

Check This Out: Doug Burgum Dodges Question On Potential VP Pick By Trump: ‘He’s Got A Lot Of Great Choices’

DJT Price Action: Trump Media ( DJT ) shares were down 9.93% at $28.20 at the time of publication, according to Benzinga Pro.