Dominari Holdings Stock Is Soaring: What's Going On?

Dominari Holdings Inc DOMH shares are trading higher Tuesday, adding to gains after rallying more than 90% to start the week. Here’s a look at what’s going on.

What To Know: Dominari Holdings shares surged 91% on Monday despite a lack of company-specific news. The stock appears to be getting some attention across social media platforms as retail investors highlight the company’s investments.

According to a filing showing holdings as of Sept. 31, 2024, Dominari maintains investments in several popular companies including Anduril, xAI, Epic Games, Discord and more.

On Tuesday, Dominari shares were halted in early trading for pending news. Shares surged after the company announced that Donald Trump Jr. and Eric Trump have joined the company’s board.

“We are thrilled to welcome Don Jr. and Eric as advisors to our team. They have each achieved significant success across a wide range of industries and bring invaluable leadership and strategic insight that we believe will be highly beneficial for our firm,” said Kyle Wool, CEO of Dominari Securities.

“Their guidance is expected to be instrumental as we continue to seek attractive investment opportunities, particularly in the rapidly evolving AI and Data Center sector.”

See Also: Sam Altman Says Elon Musk’s $97B Bid For OpenAI Is A Move To ‘Slow Down A Competitor’

Trump Jr. and Eric Trump also participated in a private placement that was announced Tuesday morning. Dominari said it entered into definitive securities purchase agreements with certain investors for approximately 1.44 million shares of its common stock.

Series A warrants to purchase up to 1.44 million shares and series B warrants to purchase up to 1.44 million shares were offered in a registered direct offering at a combined purchase price of $3.47 per share.

In a concurrent private placement, Dominari also agreed to issue and sell approximately 2.44 million shares of common stock, Series A warrants to purchase up to 2.44 million shares of common stock and Series B warrants to purchase up to 2.44 million shares of common stock at the same purchase price as in the registered direct offering. 

Additionally, Dominari announced that its board declared a special cash dividend of $4 million for stockholders of record as of the close of business on Feb. 24.

Dominari anticipates gross proceeds of approximately $13.5 million. The company intends to use net proceeds for working capital and general corporate purposes, as well as for the payment of the special cash dividend.

DOMH Price Action: Dominari Holdings shares closed Monday up 91.3% at $6.16. The stock was up 37.3% Tuesday morning, trading at $8.47 at the time of publication, according to Benzinga Pro.

Read Next:

• Shopify Q4 Earnings: 31% Revenue Surge, Free Cash Flow Growth, GMV Hits $94.5 Billion

Photo: Shutterstock.