Posted by tam tỉ tiền bác Trump có (136..12.9) on March 22, 2024 at 14:34:19:
Donald Trump's beleaguered SPAC deal is finally going through, and just in time to pay nearly half a billion dollars owed over several legal actions — if the board agrees to let him sell.
Let's get all the acronyms out in the open. Digital World Acquisition Corporation (DWAC), a special purpose acquisition company (SPAC), has been in negotiations for years to merge with Trump Media and Technology Group (TMTG) and list on the NASDAQ as $DJT. But it has encountered obstacles in shareholder reticence, Securities and Exchange Commission (SEC) scrutiny, and even grand jury subpoenas.
And that's without reckoning with the questionable success of Truth Social, the partisan social network hurriedly stood up after the former President was booted from Twitter. TMTG reportedly had a net loss of around $49 million in 2023, on revenues of under $4 million — not exactly hot numbers.
Various troubles caused the DWAC-TMTG merger to be kicked down the road over and over, and it was beginning to look like the shareholders would eventually walk away when the timing exceeded the bounds stipulated in the SPAC terms.
But today the companies filed the necessary paperwork with the SEC to consummate the merger. With DWAC stock having risen in anticipation of this event to more than $42 per share, and Trump the largest holder with $79 million shares, he could soon find himself owning $3 billion in equity in the new company.
The timing is certainly fortuitous for Trump personally. He must post hundreds of millions in bond very, very soon or face forfeiture of his assets as part of a major fraud case in New York, not to mention other damages, loans, and ongoing cases that may add to his debt. A $3 billion windfall would be welcome to him — if he can sell it.
Just one problem: a "lock-up" condition of the merger under which the board must approve any sale of stock by a company's officers and major investors for the next six months.
https://finance.yahoo.com/news/truth-social-spac-could-pay-192807301.html