- Digital World Acquisition Corp’s (NASDAQ: DWAC) share price rose more than 15% before market today. That’s why it happened.
Digital World Acquisition Corp’s (NASDAQ: DWAC) share price rose more than 15% before market today. Investors are responding positively to Trump Media & Technology Group Corp. (TMTG) and Digital World Acquisition Corp. announcing that Digital World Acquisition Corp. (DWAC) has entered into subscription agreements for $ 1 billion in committed capital receivable at the end of their activity (the PIPE) from a diverse group of institutional investors.
Together, this transaction will generate estimated proceeds of approximately $ 1.25 billion (after deducting estimated transaction costs), assuming full delivery of the amount of cash held in trust by DWAC, which will be used to fund operations of the combined entity. And the conversion price per share of the fully committed convertible preferred stock PIPE transaction represents a 20% reduction from DWAC’s volume weighted average closing price (VWAP) for the five trading days preceding and inclusive. December 1, 2021, subject to downward adjustment. .
If the VWAP of the combined entity for the 10 trading days following the closing of the business combination (closing VAP) is equal to or greater than $ 56, no downward adjustment will occur. And if the closing VWAP is less than $ 56, then the conversion price will be adjusted to the greater of a 40% discount from the closing VWAP and the floor price of $ 10.00. PIPE’s financing is subject to customary closing conditions, including shareholder and regulatory approval, and is expected to close on or shortly after the completion of the business combination.
The Trump Media & Technology Group is a social media and technology company. And TRUTH Social – TMTG’s next social media platform – will provide an outlet that encourages open global conversation without discrimination on the basis of political ideology. TMTG + (the company’s subscription-based video streaming service) is expected to include access to “non-awakened” entertainment, news, documentaries, podcasts, and more.
EF Hutton, a division of Benchmark Investments, LLC, serves as the exclusive placement agent and capital markets advisor for DWAC.
“$ 1 billion sends an important message to Big Tech that censorship and political discrimination must end. America is ready for Social TRUTH, a platform that will not discriminate on the basis of political ideology. As our balance sheet grows, TMTG will be in a stronger position to fight the tyranny of Big Tech. “
– Donald J. Trump, President of TMTG
“Our focus on creating value for public shareholders guides our decision-making and by accepting these commitments for a strategic injection of growth capital, we believe that the combined company can develop on an incredibly strong foundation. The liquidity that will be provided on the combined company’s balance sheet, in excess of the $ 293 million (less expenses) that DWAC can provide, is expected to strengthen TMTG’s strategic positioning. I have no doubts that TMTG can effectively deploy this capital to accelerate and strengthen the execution of its business, including continuing to attract the best talent, hire the best technology providers, and deploy significant advertising and marketing campaigns. Business Development.
– Patrick Orlando, President and CEO of Digital World Acquisition Corp.
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