Former president Donald Trump it needs immense liquidity to pay more than $450 million in legal bills.
But the four-time indicted Republican presidential candidate is now trying to liquidate the shares he owns Digital World Acquisition Corp. DWACthe so-called “blank check” company which – from Friday – will become part of a merger to take the Social Truth parent company, Trump Media and Technology Group (TMTG), public.
But the situation is complicated. First, DWAC’s stock price plunged nearly 14% in the hours afterward and closed Friday afternoon at about $36.94 per share.
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The sharp decline, which previously hit a 52-week high, could potentially lower the estimated value of Trump’s majority stake in the newly formed Trump Media.
Second, Trump maintains at least a 58% stake in TMTG, but cannot sell his shares for six months.
However, the new board of directors, which also includes his son, Donald Trump Jr., could review this restriction and potentially allow the twice-impeached Trump to liquidate shares sooner to cover his legal bills.
This possibility and the stock’s recent performance could further impact the company’s market stability.
Further complicating matters is the fact that TMTG co-founders — Andy Litinsky AND Wes Moss – are suing Trump for diluting the value of their shares.
TMTG will trade under the symbol DJT (Trump’s initials) on the NASDAQ, a nod to Trump’s previous publicly traded venture, Trump Hotels & Casino Resorts, which faced financial difficulties and was ultimately delisted.
Financial pressures remain a key obstacle for Trump to overcome as he aims to campaign for the November election.
President Joe Bidenmeanwhile, he will reportedly receive up to $1 billion in pledges from Democratic-leaning groups as part of the reelection effort.
Price action: DWAC shares rose to a 52-week high of $58.72 per share on Jan. 23, when the long-awaited merger seemed imminent.
However, when trading began Friday morning, shortly before the shareholder vote, the stock had fallen to $44.20 per share. In after-hours trading, the stock recovered slightly, reaching $38.55 per share, 12.7% lower than Friday’s opening price.
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This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
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