OAN’s Brooke Mallory
12:12pm – Friday, March 22, 2024
Digital World Acquisition Corporation (DWAC) shareholders on Friday approved a merger with former President Trump’s social media website, setting the stage for Truth Social to list on the stock market and giving Trump $3.5 billion. may result in
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Regulators last month approved Trump Media & Technology Group’s long-awaited merger with a blank check company, according to the Securities and Exchange Commission (SEC).
Mr. Trump, who owns about 79 million shares in the combined company, is expected to make about $3.5 billion from the deal.
“After opening at about $44 per share, the stock continued to rise throughout Friday, rising to a high of $46.70, falling to a low of $38.12, and settling around $41 just before noon.” the hill report.
The windfall coincided with the former president’s difficulty obtaining $464 million bail in a civil fraud case in New York. Trump’s lawyers acknowledged earlier this week that it would be “impossible” to obtain the full appeal bail amount.
Trump could face asset foreclosure if he doesn’t get $500 million in bonds by Monday. Following the filing of the Westchester County judgment, the New York State Attorney General’s Office has initiated the first steps toward taking possession of President Trump’s Seven Springs golf facility and private property.
The first step to getting the assets back is to get a judgment in the county where Trump owns the property.
Judgments have already been handed down in New York City, home of the former president’s famous 40 Wall Street estate and Trump Tower, and the site of Trump’s civil fraud trial.
But the former president’s critics say the provision barring insiders from selling new stock for six months could also prevent Trump from quickly accessing funds.
Last June, two people, including a former director of DWAC, were charged with insider trading for allegedly buying the company’s stock before the merger was announced and making a $22 million profit. Last July, the SEC fined DWAC $18 million for lying to regulators and investors about negotiations that DWAC’s future CEO and board chairman had with TMTG before going public.
A potential risk DWAC cited in a regulatory filing ahead of Friday’s shareholder vote was its past run-ins with the SEC.
DWAC advised President Trump that his interests would not necessarily align with those of other shareholders and that since he owns approximately 60% of the new business, he would be required to make decisions on the agenda for shareholder approval. advised that he had the authority.
Former company executives, including TMTG co-founders Andy Litinsky and Wes Moss, and former DWAC chairman and CEO Patrick Orlando, have also filed numerous lawsuits over the merger. It’s happening.
according to washington post, Orlando sued DWAC for greater damages from the merger, while Liczynski and Moss accused TMTG of trying to reduce its ownership position in the business. DWAC filed a lawsuit against the former president earlier this week in an effort to force him to support the agreement.
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