Digital World Acquisition Corp (NASDAQ: DWAC) stock is set to become Trump Media & Technology Group (TMTG). DWAC Stock ended last week up 4% and is now trading around $84.
Trump Media and Technology Group (T Media Tech LLC) is the special purpose acquisition company (SPAC) set to take Donald Trump’s media empire public. And its crowning glory is its messaging app Truth Social, expected to rival Twitter and Facebook.
Trump’s tweets were notorious during his time as the US president, and fans eagerly await his controversial return via Truth Social.
What makes Truth Social different!? We are a social media platform that is free from political discrimination. Join us and share, communicate, and have fun!
According to its listing in the Apple Appstore, The Truth Social app is expected to launch on Monday, February 21, President’s Day in the US. Although some reports suggest, it won’t be fully operational until the end of March.
Meanwhile, Donald Trump Junior posted the following tweet on Twitter:
Time for some Truth!!! pic.twitter.com/jvyteDb5gW
— Donald Trump Jr. (@DonaldJTrumpJr) February 15, 2022
The tweet announces his father’s first post on ‘Truth Social.’
When DWAC Stock becomes TMTG, DWAC investors will automatically become shareholders in TMTG. While some reports state the merger is imminent, there is no set date yet.
According to form 10-Q dated November 22, 2021, the company has until September 8, 2022 (or up to March 8, 2023, with an extension) to close the merger.
TMTG is already collaborating with Rumble, a Canadian YouTube competitor also getting set to go public via SPAC CFVI.
Devin Nunes, CEO of Trump Media & Technology Group Corp, recently told Fox News:
Rumble are one of the only big social media companies that have actually been able to get a fortified beachhead and survive against Big Tech, so we’re looking for partners like that that will ensure, to the best of our ability, that once we do go live, we will have a safe place that Big Tech cannot cancel.
Devin Nunes left Congress to become CEO of Trump Media and Technology Group.
Will DWAC Enjoy a Brief Bounce?
The equity markets have been under a cloud in recent weeks and traders are keen to find volatility to trade. Hype around the launch of Truth Social may well give DWAC stock a momentary bounce as interest heightens.
However, the current DWAC share price gives it a market cap exceeding $3bn which is a phenomenal value on a company that is yet to prove itself and its profitability in any way.
On average post-merger SPAC's don't have a great track record of bringing shareholder wealth. Particularly as insiders are free to sell their shares for a premium and warrants expire leading to share price dilution.
Under Investigation
Meanwhile, CNN reported a long list of investigations currently involving Donald Trump. These include efforts to influence the 2020 presidential election, handling classified White House documents, tax questions, the run-up to the Capitol insurrection, and multiple individuals attempting to sue him.
DWAC Stock Merger
Last October, Digital World Acquisition Corp entered into a definitive merger agreement to acquire Trump Media & Technology Group for $1.3bn in stock and contingent pay-out via a reverse takeover.
According to a press release at a time, the transaction is expected to close in Q3 2022. It is subject to approval by stockholders of both the companies and other customary closing conditions, including any applicable regulatory approvals.
On November 18, 2021, it was announced that the Securities and Exchange Commission (SEC) would investigate the proposed transaction.
Trump Media & Technology Group is located in Palm Beach, Florida, United States and owns and operates social media platforms.
The financial advisors in the deal include EF Hutton Advisors LLC for Digital World Acquisition Corp (DWAC Stock). The legal advisors in the deal include Nelson Mullins Riley & Scarborough LLP for Trump Media & Technology Group (TMTG).