Daily advertisers and Reddit enthusiasts helped promote an exciting conference in the Digital World Acquisition Corp, which reached $ 94.20 last month before launching a recent $ 60 sales.
The empty company founded by Donald Trump’s new journalist has already won the support of retailers who have shipped the stock about 500%. Now, Wall Street’s major investors are finding another way to invest, just as other financial institutions have set out to do business with the former US president.
Digital World Acquisition Corp. has begun arranging meetings with potential investors to set up private funds in state-owned companies, or PIPE, to support its merger with Trump Media & Technology Group, according to people familiar with the matter. Although PIPE’s terms have not been finalized, they could exceed $ 500 million in size, said one of the applicants who asked not to be named because the talks were confidential.
Any new funding could add additional funding to establish a media conglomerate, which plans to start with an online social network called Truth Social that could give Trump a platform after being banned from Facebook and Twitter. PIPEs also help to lend loyalty to partners with a specific corporate purpose and are able to provide security if early investors decide to redeem their shares.
Typically, PIPEs are priced at $ 10 per share, in line with the initial public offering for most SPACs. But today’s retailers and Reddit enthusiasts have helped boost an exciting conference in Digital World, which reached $ 94.20 last month before the recent sell-off of about $ 60. Based on these benefits, each PIPE is expected to cost more than $ 10, one of which people familiar with the matter said.
The prospect of making a big profit could attract investors, especially if the Trump PIPE agreement was made in the same way as a major injection that helped Lucid Motors’ electric car manufacturers in conjunction with Churchill Capital Corp IV. PIPE for doing this. signed on a $ 15 share, signaling a major paper profit over $ 52.94 that was closed before announcing the deal. Despite the turmoil in the months that followed, Lucid paid homage to the investors, selling on Monday at $ 47.61 from 3:15 pm New York time.
A Digital World representative declined to comment, while a Trump Media spokesman did not immediately respond to a request for comment.
The two agencies said last month that their joint venture was valued at $ 875 million, including loans, with the potential to double the company’s profits, or $ 1.7 billion. The Truth Social Growth Plan – launched in beta this month and spread across the US for the first quarter of 2022 – is expected to be funded by SPAC in the belief of $ 293 million, he said at the time.
Digital World also mentioned in other files that it has the potential to raise PIPE, and also noted that Trump Media executives could be “asked” to participate in business meetings and street shows. But Trump himself will not be present at the entire PIPE street show, said one person familiar with the matter.
Some Wall Street hedge funds have already seceded from Digital World. Boaz Weinstein’s Saba Capital Management has quickly lost its entire share of the unrest in SPAC after hearing of its alliance with the Trump administration. Lighthouse Investment Partners and DE Shaw & Co. he also sold shares.
“Many retailers are facing difficult questions about how to incorporate their beliefs into their work,” Weinstein said at the time. “For us, this was not a simple song.”