Trump’s Media Deal Partner Nears $50 Million Financing
Digital World Acquisition Corp (DWAC.O), opens new tab, the blank-check acquisition company that has agreed to take former U.S. President Donald Trump’s social media platform public, is nearing a $50 million financing deal, people familiar with the matter said on Thursday.
The deal, which could be announced in the next few days, is based on convertiblewill help fund DWAC while it its merger with Trump Media & Technology Group (TMTG), owner of social media platform Truth Social, sources said.
DWAC shares ended trading won the Iowa caucus on his way to the Republican nomination for bet that his re-emergence as a major political figure will make Truth Social more valuable.Thursday up 4.4% at $47.66 on the news. They are up almost threefold since Jan. 15 — when Trump
Investment firms Anson Funds, All Blue Capital and Mangrove Partners have offered to buy the convertible notes onthat the timing and composition of the deal may still change.
The sources requested anonymity becauseare confidential. DWAC Chief Executive Eric Swider declined to comment. Representatives for Anson Funds, All Blue Capital and Mangrove Partners did not immediately respond to
after cancelling a $1 billion private-investment-in-public-equity (PIPE) transaction.last month it was raising $50 million in convertible notes
DWAC agreed to merge with TMTG in October 2021 but failed to complete the deal by a September 2022U.S. financial regulators scrutinized DWAC’s disclosures to investors. That investors the right to cancel their commitments.
An amendmentTMTG’s deal with DWAC last August called for unwinding the gave Trump shares in DWAC with more voting power. DWAC has been left with close to $300 million in funds it raised with its initial public offering in that money is earmarked to to TMTG once their merger completed.
DWAC has faced several challenges in the deal with TMTG. It has been the target of investigations by the U.S. Department of Justice and the Securities and Exchange Commission (SEC), replaced its chief executive and shook up its board.
In September, DWAC investors voted toDWAC is now waiting for clearance from the SEC to allow its shareholders to vote on the merger with TMTG.
DWAC has said it expects to draw $10 million from the $50 million convertible note raise for its immediatetap the remainder on completing its deal with DWAC.