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Tuesday, February 27, 2024

Trump-Linked Digital World Acquisition Corp Nears $50M Financing Deal: Report – Digital World Acq (NASDAQ:DWAC)

Digital World Acquisition Corp DWAC, the Particular Function Acquisition Firm set to take former President Donald Trump’s social media platform public, is reportedly on the verge of securing a $50 million financing deal.

What Occurred: The financing deal, which relies on convertible notes, is more likely to be introduced within the coming days. The funds will help DWAC in its efforts to finish its merger with Trump Media & Expertise Group, the entity that owns the social media platform Fact Social, reported Reuters.

Funding corporations Anson Funds, All Blue Capital, and Mangrove Companions are reportedly serious about shopping for the convertible notes on provide. Nonetheless, Reuters sources warned that the deal’s timing and composition would possibly nonetheless change.

Within the earlier month, DWAC revealed that it was elevating $50 million in convertible notes after canceling a $1 billion private-investment-in-public-equity (PIPE) transaction. The corporate is now ready for SEC clearance to allow its shareholders to vote on the merger with TMTG.

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Why It Issues: The financing deal comes at a vital time for DWAC and TMTG. In November 2023, DWAC introduced a submitting of Modification No. 1 to its Kind S-4 Registration Assertion, marking a big step within the enterprise mixture course of with TMTG, as reported by Benzinga.

Final month, DWAC shares surged after Florida Gov. Ron DeSantis ended his presidential marketing campaign and endorsed Trump, as per a Benzinga report. This endorsement boosted investor confidence in Trump’s political resurgence and its potential influence on Fact Social’s worth.

Moreover, Trump’s potential look on the 2024 election poll, at present into consideration by the Supreme Court docket, may additional affect investor sentiment and the worth of Fact Social, as highlighted by a Benzinga article.

Worth Motion: Following the information on Thursday, DWAC’s shares noticed a 4.4% improve to $47.66. The shares gained one other 2.18% within the after-hours buying and selling.

Since January 15, when the previous president received the Iowa caucus, DWAC shares have nearly tripled.

Photograph through Shutterstock

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