The chief operating officer of Truth Social’s parent company has resigned, and the company is required to hand over nearly 785,000 shares to one of its investors as part of a court ruling, according to a regulatory filing. COO Andrew Northwall stepped down from Trump Media & Technology Group Corp late last month, as stated in a Securities and Exchange Commission (SEC) filing, which noted that the company plans to “transition his duties internally.”
No additional details about his resignation were provided. Northwall joined the company in December 2021, according to his LinkedIn profile.
The SEC filing also revealed that a Delaware court ruled last month that 785,825 shares of Trump Media must be released to ARC Global Investments II. The two parties have been in dispute over the number of shares ARC owed following Trump Media’s merger with Digital World Acquisition Corp. The court stated that ARC and Trump Media have the option to appeal within 30 days after the final order.
Trump Media operates the social media platform Truth Social, which former President Donald Trump established after being banned from Twitter and Facebook following the January 6, 2021, Capitol riot. Based in Sarasota, Florida, the company has been experiencing financial losses and struggling to generate revenue.
It reported a loss of nearly USD 58.2 million last year while generating only USD 4.1 million in revenue, according to regulatory filings.
Shares of Trump Media have been dubbed a meme stock by some market experts, a term used for stocks that gain popularity online and rise significantly beyond their fundamental value. The stock has experienced fluctuations over several months, with trading largely driven by individual investors, typically less sophisticated than day traders.
Late last month, Trump Media’s stock hit an all-time low on the first trading day that Trump, the company’s largest shareholder, was free to sell his stake in the Truth Social platform. Trump Media, commonly referred to as TMTG, began trading publicly in March. When it debuted on the Nasdaq, shares reached a high of USD 79.38. Shares of Trump Media & Technology rose slightly to USD 16.20 before the market opened on Friday.
(With Inputs from Associated Press)
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