New York Stock Exchange-listed shares of Digital World Acquisition Corp. — the special purpose acquisition company that announced Wednesday evening it will merge with former President Donald Trump’s new social media firm — soared more than 100 percent Thursday.
DWAC’s stock price began trading Thursday at $12.73 per share and reached as high as $23.86, up more than 134 percent, by 12:00 p.m. ET.
Shares of the company were halted for volatility at noon, with the stock up more than 134 percent.
Trump’s newly formed company, Trump Media & Technology Group, announced Wednesday evening that it plans to merge with DWAC and take its place on the public markets.
TMTG said it will roll out a new social network, dubbed TRUTH Social, which is set to launch in beta for “invited guests” next month and come online nationwide in the first three months of 2022.
Its mission is to “create a rival to the liberal media consortium and fight back against the ‘Big Tech’ companies of Silicon Valley, which have used their unilateral power to silence opposing voices in America,” it said.
DWAC is a SPAC, an increasingly popular financial set-up in which a company goes public to raise funds from investors and then purchases a private company, allowing it to take the SPAC’s place on the public markets.
The merger deal would value TMTG “at an initial enterprise value of $875 Million, with a potential additional earnout of $825 Million in additional shares (at the valuation they are granted) for a cumulative valuation of up to $1.7 Billion depending on the performance of the stock price post-business combination,” according to the Wednesday press release.
“Trump Media & Technology Group’s growth plans initially will be funded by DWAC’s cash in trust of $293 Million (assuming no redemptions),” according to the release.
TMTG has not yet named any management officers or employees.
Patrick Orlando, CEO of DWAC, hailed TMTG as “one of the most promising business combination partners to fulfill that purpose.”
“Given the total addressable market and President Trump’s large following, we believe the TMTG opportunity has the potential to create significant shareholder value,” he added.
Orlando is a former employee of investment banks, including Deutsche Bank, where he specialized in emerging markets fixed-income derivatives.
The chief financial officer of DWAC is Luis Orleans-Braganza, a member of Brazil’s National Congress and a supporter of the far right president, Jair Bolsonaro.
Orleans-Braganza is also a member of Brazil’s defunct royal family.