PSQ Holdings Shares Decline After Trump Jr. Joins Board of Directors

PSQ Holdings, Inc. (NYSE: PSQH) shares experienced a significant decline of 32% on Monday following the announcement of a new stock offering by the company. This drop came after a remarkable 270% surge in the stock price the previous day, triggered by the news that Donald Trump Jr. would be joining the company's board of directors.

Donald Trump Jr., the eldest son of presidential candidate Donald Trump, expressed his excitement about the new role and emphasized PublicSquare's unique market position and commitment to principles of freedom. He highlighted the company’s growing marketplace and payment ecosystem, indicating a dedication to the success of the company’s mission.

Today, PSQ Holdings announced that it has entered into definitive agreements for the sale of 7,813,931 shares of Class A common stock at a price of $4.63 per share. The transaction is expected to generate approximately $36.2 million in gross proceeds from a registered direct offering. The closing of the offering is anticipated to occur around December 5, 2024, subject to the fulfillment of standard closing conditions.

Roth Capital Partners has been selected as the sole placement agent for the offering. The estimated capital from this offering, projected at $36.2 million before deducting placement agent fees and related expenses, is intended for general corporate use. PSQ Holdings plans to allocate the net proceeds for corporate needs, including bolstering working capital.