DWAC Stock: Donald Trump needs cash and vote on Trump Media merger is on Friday

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By journalsofus.com


shareholders of digital world takeover (DWAC), the special purpose acquisition company aimed at taking former President Donald Trump’s tech and social-media platforms public, is scheduled to vote Friday on its long-awaited merger with Trump Media & Technology Group. DWAC shares rose early Thursday.




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DWAC shareholders are currently scheduled to hold a meeting Friday to approve the special purpose acquisition company’s merger with Trump Media, according to federal filings. Meanwhile, Trump is having trouble securing a nearly half-billion-dollar bond to appeal his $454 million civil business fraud verdict.

The Miami-based SPAC has a history of postponing and rescheduling shareholder votes.

DWAC aims to take Trump Media & Technology Group (TMTG) public in a reverse merger. Trump Media is the parent of the conservative social-media platform Truth Social.

If DWAC shareholders approve the merger on Friday, TMTG will be a wholly owned subsidiary of Digital World. According to regulatory filings, DWAC will change its name to Trump Media & Technology Group. If the merger is completed, Trump’s 90% stake in TMTG could be worth approximately $4 billion, based on DWAC’s current stock price.

On Tuesday, Trump posted on Truth Social that he should not be required to put money into his New York fraud case. The former president wrote that he would be forced to mortgage or sell “great properties, perhaps at fire sale prices, and if and when I win the appeal, they will be gone.”

DWAC stock rose 2.5% during Thursday premarket action. On Wednesday, DWAC shares rose 17.8% to 42.90, while Truth Social suffered a bigger decline.

Truth Social was launched after Twitter, now X, shut down Trump’s account following the January 6, 2021 riot at the US Capitol.

In October 2021, Truth Media and DWAC announced their plans to merge. The federal investigation has delayed the proposed merger for years. However, on February 14, DWAC announced that the U.S. Securities and Exchange Commission (SEC) declared that the registration statement of the merger was effective, and approved the proposed combination to proceed.

Trump and DWAC Stock

The Donald Trump brand and the value of DWAC stock are closely related. Trump’s current status as the top Republican candidate for president has clearly factored into the stock’s gains so far this year. Federal charges could potentially tarnish that brand, according to company filings, though that hasn’t happened yet.

DWAC had fallen more than 11% in March before Wednesday’s trading. However, shares rose above their 50-day moving average on Wednesday, according to MarketSurge analysis. DWAC stock is up more than 140% as TMTG is set to go public and Trump looks like he’ll be the GOP presidential nominee in 2024.

DWAC stock is down about 61% from its Oct. 22, 2021 high of $175, which was marked just after news of the Trump merger deal broke.

DWAC stock has a composite rating of 41 out of the best possible 99. The shares also have a Relative Strength Rating of 99 and an EPS Rating of 2.

PLease Follow Kit Norton on X, formerly known as Twitter, @kittenorton For more coverage.

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