Digital World Acquisition Corp DWACthe special purpose acquisition company set to get the former president Donald Trump’s public social media platform, is reportedly on the verge of securing a $50 million funding deal.
What happened: The convertible bond-based financing deal is likely to be announced in the coming days. The funds will assist DWAC in its efforts to complete the merger with Trump Media and Technology Groupthe entity that owns the social media platform Truth Social, Reuters reported.
Investment firms Anson Funds, The whole Blue CapitalAND Mangrove partner would be interested in purchasing the convertible bonds on offer. However, Reuters sources warned that the timing and composition of the deal could still change.
In the previous month, DWAC revealed it was raising $50 million in convertible bonds after canceling a $1 billion Private Investment In Public Equity (PIPE) transaction. The company is now awaiting SEC clearance to allow its shareholders to vote on the merger with TMTG.
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Because matter: The financing agreement comes at a crucial time for DWAC and TMTG. In November 2023, DWAC announced the filing of Amendment No. 1 to its Form S-4 Registration Statement, marking a significant step in the business combination process with TMTG, as reported by Benzinga.
Last month, DWAC stock surged after Florida Gov. Ron De Santis he ended his presidential campaign and endorsed Trump, according to a Benzinga report. This endorsement has strengthened investor confidence in Trump’s political resurgence and its potential impact on Truth Social’s value.
Additionally, Trump’s potential presence in the 2024 election, currently under review by the Supreme Court, could further influence investor sentiment and the value of Truth Social, as highlighted by an article by Benzinga.
Price Action: Following Thursday’s news, DWAC shares rose 4.4% to $47.66. Shares gained another 2.18% in after-hours trading.
Since Jan. 15, when the former president won the Iowa caucus, DWAC stock has nearly tripled.
Photo via Shutterstock
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