It is expected that Truth Social, Trump's platform, will be listed on the stock exchange next week - NewssMex


viernes, 22 de marzo de 2024

It is expected that Truth Social, Trump's platform, will be listed on the stock exchange next week


The shareholders of Digital World Acquisition Corp (DWAC) approved a merger with the parent company of Trump's social network, Truth Social, this Friday. As a result, it could go public next week and generate more than 3 billion dollars for the former president.

DWAC is known in stock market jargon as a SPAC (Special Purpose Acquisition Company), companies without their own activity that serve as an instrumental screen for another company to start trading on the stock exchange, for example, streamlining all procedures.

Truth Social, which is a copy of X where Trump posts daily, is expected to start trading on Wall Street next week under the symbol DJT, Trump's initials, with a valuation of 5.5 billion dollars.

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Meanwhile, Trump's approximately 60% stake translates into about 3 billion dollars, depending on how the shares are traded.

However, Trump will be prohibited from selling shares of the merged company for at least six months, but there is a possibility that the board of directors will vote to allow him to sell shares before that date.

On Monday, the former president has to post a bond of more than 450 million dollars for the civil fraud case for which he was convicted in New York.

If he does not make that payment, the New York Attorney General could initiate the process of seizing Trump's assets.

In addition, the former president faces huge legal bills from his lawyers in criminal and civil cases, and other fines from other sentences.

Today's investor vote represents the realization of something that has been attempted for two and a half years, and it is not clear how the stock market operation can immediately alleviate Trump's financial commitments, who could be forced to sell assets.

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Several media have reported that the tycoon has received refusals from multiple insurers to advance him the bail money, and some have even mentioned that the iconic Trump Tower in New York might have to be sold.

Truth Social was founded after the then-president was expelled from Twitter following the assault on the Capitol in 2021.