Acquisitions & Mergers

Up to $50 million may be raised by a Trump-affiliated SPAC through convertible notes and warrants.

By - 18 Jan 2024 04:23 PM

In a filing, Digital World Acquisition—the blank-check company that is going to merge with the media company owned by former US President Donald Trump—said that it could raise as much as $50 million through the issuance of convertible notes or warrants.

Shares of Digital World dropped 9.2% to $20.30 on

A publicly traded shell company known as a special purpose acquisition company, or SPAC, raises capital with the goal of merging with a private company within two years of floating its shares. The merger allows the private company to go public.Digital World said in the filing with the U.S. Securities and Exchange Commission that it was still in talks to raise funds through alternative options after some potential investors expressed interest, though it added there was no certainty that the talks will be successful.The blank-check company declared that it would forfeit the $530.5 million that remained from the $1 billion in PIPE that it had raised.

The SPAC raised $1 billion through PIPE in 2022, but the investors had the option to back out of their commitments when the merger with Trump Media and Technology Group was not completed by the September 2022 deadline.Truth Social is a social media platform run by Trump Media & Technology Group. (Editing by Shounak Dasgupta; reporting by Akash Sriram in Bengaluru)