DWAC, a blank check company that merged with Trump's social media startup, surged 35% on Monday to announce that it will begin trading on Tuesday after the merger
The Zhitong Finance App learned that, according to a statement, after more than two years of twists and turns, Trump Media & Technology Group (Trump Media & Technology Group) is expected to be listed on the NASDAQ on Tuesday after completing the transaction with the blank check company (SPAC) Digital World Acquisition Corp (DWAC.US) under the trading code DJT. DWAC shares surged 35% on Monday.
Shareholders voted to pass the deal as scheduled on Friday. According to data compiled by Bloomberg, DWAC's stock price on Monday not only recovered a 14% drop from the previous trading day, but also soared 35.22% to 49.95 US dollars per share, the biggest one-day increase since January. Additionally, SPAC-linked warrants rose 26% to $23.15, the highest in two years.
According to information, this merger may allow Trump to obtain shares worth more than 5 billion US dollars, but due to lockdown agreements and performance requirements, the ability to monetize may be temporarily blocked, and it is difficult to use this to ease the current shortage of cash.
According to the statement, Digital World CEO Eric Swider (Eric Swider) will be a director of the merged company, and the company will have former California Representative Devin Nunes (Devin Nunes) as CEO.
For Trump, who became the Republican presidential candidate at the beginning of this month, this windfall may have come at just the right time. Trump currently has to pay millions of dollars every month to fund legal disputes. The judge ruled that Trump will face his first criminal trial on April 15.
Also, last month, due to a civil ruling that Trump had misrepresented his wealth for years, another judge ordered him to pay $454 million. Although an appellate court in New York agreed on Monday to cut the amount of security deposit Trump must pay while defending the ruling, he still has to pay 175 million US dollars within 10 days.
Shares of the SPAC company have more than doubled this year as investors use it as a way to bet on Trump's re-election campaign. Since the announcement of the deal in 2021, the stock has been a favorite among retail traders, and both StockTwits and Reddit's WallStreetBets forums are full of lively discussions about investing in the stock.