FILE PHOTO: Former U.S. President Donald Trump looks on during his first post-presidency campaign rally at the Lorain County Fairgrounds in Wellington, Ohio, U.S., June 26, 2021. REUTERS/Shannon Stapleton
November 9, 2021
(Reuters) – Digital World Acquisition Corp is scheduling meetings with prospective investors for a private investment in public equity, or PIPE, transaction to support its merger with former U.S. President Donald Trump’s new social media venture, Bloomberg News reported on Monday.
While the PIPE’s terms have not been finalized, the investment may exceed $500 million in size and is expected to price above $10 a share, the report said, citing a person familiar with the matter.
The special purpose acquisition company (SPAC) tied to Trump’s venture network, Truth Social, has seen its stock jump almost 500% since the deal was announced.
A SPAC is a shell company that raises funds in an IPO with the aim of acquiring a private company, which then becomes public as result of the merger.
Digital World and Trump Media & Technology Group were not immediately available for a comment.
Trump and other Trump Media & Technology Group shareholders will initially own 69% of the combined company after the merger with the Miami-based blank-check firm, a regulatory filing showed last month.
(Reporting by Uday Sampath in Bengaluru; Editing by Sherry Jacob-Phillips)