Company: DJTWW
Filing Date: 2025-03-18
Form Type: 424B3
Source: 0001140361-25-009258
Chunk: 53

Company: Trump Media & Technology Group Corp.
Filing Date: 2025-03-18
Form: 424B3
Chunk 53
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 Court of Chancery found that an incentive stock award to the company’s co-founder and CEO, which was approved by the company’s stockholders in 2018, was not “entirely fair” to stockholders. That court rescinded the award, determining that the co-founder and CEO was a “controller” even though he only held 21.9% of the company’s stock because he “wielded the maximum influence that a manager can wield over a company” and “occupied the most powerful trifecta of roles within a corporation—CEO, chair, 35

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and founder.” Following the court’s rescission decision, the company’s stockholders ratified the CEO’s incentive stock award in 2024, affirming their desire from 2018 to keep their co-founder and CEO incentivized, an action that was again rescinded by the Delaware courts. We believe the Reincorporation will result in less unmeritorious litigation against the Company, our directors and officers and our controlling stockholder, which in turn would better allow our directors and officers to focus on our business and save the Company the costs of such litigation. Though there are proposed amendments to the DGCL to, among other things, increase protections for officers of a corporation, we believe Florida strikes a better balance between the benefits and costs of litigation to the Company and its stockholders than does Delaware because Florida has a statute-focused approach to corporate law whereas Delaware’s approach depends upon judicial interpretation that lends itself to greater uncertainty. Franchise Tax Another factor the Board considered in electing to pursue the Reincorporation was the reduction in the Company’s franchise tax liability. Unlike Delaware, Florida does not require domestic corporations to pay a franchise tax. We expect to pay franchise tax in the amount of approximately $200,000 for tax year 2024. Florida only requires the payment of aggregate annual fees of $150 when a corporation files its annual report. Accordingly, we estimate that we will save a significant amount per year on franchise taxes if the Reincorporation Proposal is approved. Potential Disadvantages of the Reincorporation Notwithstanding the belief of the Board as to the benefits to our stockholders of the Reincorporation, Delaware is a popular domicile for publicly-traded companies in the United States. The Delaware Court of Chancery and Supreme Court are highly respected and experienced business courts. Delaware has an extensive body of case law. Trials are before judges who are experts in corporate law and appointed for 12-year