Many traders were stunned to learn on Wednesday that Trump's social media venture was seeking to raise as much as $1 billion in a PIPE financing, with Reuters reporting that Trump was personally calling some investors to ask them to make a commitment of more than $100 million as it now appears that "allocating capital to a Trump SPAC" is the new "donating to the Clinton foundation". The reason for the surprise is that while the original SPAC deal from September valued Trump Media at $875 million (including debt) just two months later the company is now seeking to raise up to an additional $1 billion at a valuation of close to $4 billion, to reflect DWAC's rally after the stock soared in its first few days of trading as some speculated it could emerge as a twitter competitor.
And yet, the deal did get done and on Saturday, Trump's social media venture said it inked agreements to raise about $1 billion from a group of unidentified investors as it prepares to float in the U.S. stock market. Digital World Acquisition Corp, the blank-check acquisition firm that will take Trump Media & Technology Group Corp public by listing it in New York, said it will provide up to $293 million to the partnership with Trump's media venture, taking the total proceeds to about $1.25 billion.
The $1 billion will be raised through a private investment in public equity (PIPE) transaction from "a diverse group of institutional investors," Trump Media and Digital World said in a statement. They did not respond to requests to name the investors.
Trump Media and Digital World said the per-share conversion price of the convertible preferred stock PIPE transaction represents a 20% discount to Digital World's volume-weighted average closing price for the five trading days to Dec. 1, when Reuters broke news of the capital raise. If that price averages below $56 in the 10 days after the merger with Digital World has been completed, the discount will grow to 40% with a floor of $10, the companies added. Digital World shares ended trading on Friday $44.97. --->READ MORE HERE
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| Al Drago/Pool via AP |
Rep. Devin Nunes, the California Republican who was one of the first lawmakers to openly doubt the Russia-collusion story and became a vocal defender of then-President Trump, is retiring from Congress to lead Mr. Trump’s new media organization, the company announced Monday.
Trump Media & Technology Group said Mr. Nunes will join the company as CEO in January.
“Congressman Devin Nunes is a fighter and a leader,” Mr. Trump said in a statement. “He will make an excellent CEO of TMTG. Devin understands that we must stop the liberal media and Big Tech from destroying the freedoms that make America great. America is ready for TRUTH Social and the end to censorship and political discrimination.”
Mr. Trump is banned on social media platforms such as Twitter and Facebook over his role in the Jan. 6 riot at the U.S. Capitol.
Mr. Nunes informed his constituents in a letter.
“Recently, I was presented with a new opportunity to fight for the most important issues I believe in,” the lawmaker wrote. “I have decided to pursue this opportunity, and therefore I will be leaving the House of Representatives at the end of 2021. I will deeply miss being your congressman. Rest assured, I have not, by any means, given up our collective fight – I’ll just be pursuing it through other means.” --->READ MORE HEREFollow links below to related stories:
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