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Glad to read some good news for the former President. His TS company is going public. Though the news comes with much optimism, it does not come soon enough for him to obtain the needed cash for his legal bills as he won't have access to selling shares for six months.
Trump Media merger wins investor approval, netting Trump potential windfall
"Shareholders voted Friday to take former president Donald Trump’s media company public, a long-delayed move that will open the owner of Truth Social to stock-market investors and grant Trump a stake worth billions of dollars he could potentially use to pay down his legal debts.
The vote Friday by investors in Digital World Acquisition authorized the special purpose acquisition company, or SPAC, to merge with Trump Media & Technology Group as part of a process that will avoid a more traditional public offering.
Trump will own about 60 percent of the company, which at Digital World’s current share price would be worth about $3.3 billion. He and other investors could earn tens of millions more shares through an “earnout” provision tied to the stock’s performance, Digital World said in an SEC filing."
Critics have said Trump Media is a “meme stock” with a more than $6 billion valuation they say is out of sync with its financial outlook. Trump Media lost $49 million in the first nine months of last year and brought in $3.4 million in revenue, Digital World said in an SEC filing.
Digital World’s share price slid roughly 5 percent on the news, to about $40.
A lockup provision in the merger agreement will also prevent Trump and other major investors from selling their shares for six months unless he is granted a waiver by the post-merger company’s board.
That could limit Trump’s ability to use the windfall to help pay off the hundreds of millions of dollars he owes in legal judgments. Trump does not have the cash to secure a bond that would delay enforcement of the $464 million judgment in a New York fraud case, his lawyers said. If he does not post a bond by Monday, the state’s attorney general could move to seize his bank accounts, real estate and other assets."
Trump Media merger wins investor approval, netting Trump potential windfall
"Shareholders voted Friday to take former president Donald Trump’s media company public, a long-delayed move that will open the owner of Truth Social to stock-market investors and grant Trump a stake worth billions of dollars he could potentially use to pay down his legal debts.
The vote Friday by investors in Digital World Acquisition authorized the special purpose acquisition company, or SPAC, to merge with Trump Media & Technology Group as part of a process that will avoid a more traditional public offering.
Trump will own about 60 percent of the company, which at Digital World’s current share price would be worth about $3.3 billion. He and other investors could earn tens of millions more shares through an “earnout” provision tied to the stock’s performance, Digital World said in an SEC filing."
Critics have said Trump Media is a “meme stock” with a more than $6 billion valuation they say is out of sync with its financial outlook. Trump Media lost $49 million in the first nine months of last year and brought in $3.4 million in revenue, Digital World said in an SEC filing.
Digital World’s share price slid roughly 5 percent on the news, to about $40.
A lockup provision in the merger agreement will also prevent Trump and other major investors from selling their shares for six months unless he is granted a waiver by the post-merger company’s board.
That could limit Trump’s ability to use the windfall to help pay off the hundreds of millions of dollars he owes in legal judgments. Trump does not have the cash to secure a bond that would delay enforcement of the $464 million judgment in a New York fraud case, his lawyers said. If he does not post a bond by Monday, the state’s attorney general could move to seize his bank accounts, real estate and other assets."