“I love Truth Social,” Donald Trump declared over the weekend on Truth Social, the social media platform he launched to fight left-wing censorship of conservative ideas.
Investors in Digital World Acquisition Corp. likely feel the same way, as stock rose about 21% on Monday.
DWAC is a special purpose acquisition company (SPAC) formed to acquire Trump Median & Technology Group (TMTG), the owner of social media platform Truth Social. On Friday, shareholders voted to approve the deal.
Shares of the combined company are expected to begin public trading this week under the ticker symbol DJT.
The deal is a windfall for Trump, who owns more than 60% of TMTG stock. He is expected to own about 58% of the combined company, which could be worth about $3 billion at recent market prices.
Trump’s shares are subject to a six-month lockup that prevents him from selling them or pledging them as collateral for a loan, a standard provision in many initial public offerings and SPAC transactions. is. But the board could lift the lockup to allow him to pledge his stock to support an appeals bond in a fraud judgment against him in New York.
The New York Court of Appeals on Monday agreed to give President Trump an additional 10 days to post his appeal bail, reducing the amount he must post on appeal bail to $454 million less than his full judgment. The amount was reduced to $75 million. The court’s decision means any attempts by New York Attorney General Letitia James to seize President Trump’s assets to enforce the judgment are put on hold.
