Finance

Trump’s social media company set to trade on Nasdaq on Tuesday


(Bloomberg) — Shares of the blank-check company merging with former President Donald Trump’s social media startup soared 35% on Monday as the combined company said it would begin trading on Tuesday, potentially giving him Get a windfall.

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After more than two years of obstacles, Trump Media Technology Group is expected to list on Nasdaq under the stock symbol DJT after completing a deal with Digital World Acquisition Corp., a statement said.

DWAC shares soared to $49.95 per share, their biggest one-day gain since January, according to data compiled by Bloomberg. The stock pared a 14% loss after shareholders voted Friday to approve the deal as expected. Warrants related to the SPAC increased 26% to $23.15, the highest level in two years.

The merger could give Trump more than $5 billion worth of stock, although the shares would be subject to lock-up agreements and performance requirements, which could temporarily hamper his ability to monetize the shares and ease his current cash shortage.

Read more: Trump wealth hits record $6.4 billion on SPAC deal, slashes bonds

Digital World CEO Eric Swider will become a director of the combined company, which will be led by former California Rep. Devin Nunes, who left Congress to become Trump Media executive, according to the statement. long.

The windfall could come at a critical time for Trump, who became the Republican presidential nominee earlier this month. He pays millions of dollars a month to fund his ongoing legal troubles. Trump is scheduled to undergo his first criminal trial on April 15, and the judge will rule.

Separately, Trump was ordered last month by a different judge to pay $454 million after a civil ruling that said he fraudulently inflated his wealth for years. And a New York appeals court on Monday agreed to significantly reduce the amount the former president must pay. He still has 10 days to post $175 million as a bond while he contests the verdict.

The special purpose acquisition vehicle has more than doubled in price this year as investors use it as a way to bet on Trump’s re-election push. The stock has been a favorite among the retail trading crowd since the deal was announced in 2021. Stocktwits and Reddit Inc.’s WallStreetBets forum encouraged people to buy the stock.

(Updated legal background in paragraph six.)

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