It is safe to say that no SPAC has been written about more often and more extensively than Digital World (NASDAQ:DWAC). It is thus with some wistfulness that SPACInsider reports that Digital World is no more, having completed its combination with Trump Media & Technology Group today.
The combined company’s shares and warrants will begin trading on the Nasdaq tomorrow under the symbols “DJT” and “DJTWW”. And trade, they will, with already more than 4.5 million shares changing hands through the first half of today and Digital World warrants (NASDAQ:DWACW) surging +10.6% to $20.33.
Getting to market will not be the end of drama surrounding the deal, because much like its chairman, the company carries with it the baggage of multiple lawsuits and it will surely be watched closely by regulators as it continues to draw on meme stock momentum.
But, it nonetheless bears noting the long path it has taken to get here.
When Digital World first announced the deal in October 2021, Donald Trump had only left office nine months earlier and thus there is some symmetry to the fact that the deal now closes just under nine months before an election that could see him move back into the White House.
During that time, it raised a $1 billion PIPE, dissolved that PIPE, was fined by the SEC, terminated its CEO and head of its sponsor, extended multiple times with one requiring six adjournments to drum up sufficient turnout. It ultimately sued its sponsor while being sued in turn by him and early vendors.
It also hit meme stock highs including a peak at $175 per share and who is to say that it can’t return to these given Donald Trump’s viral following in a heated campaign year.
Trump is also single-handedly the factor most likely to send shares in the other direction as well, however, should he opt to leverage share capital to pay is own mounting legal liabilities.
Such a move could occur already this week should the Board opt to waive his lock-up, while Digital World’s sponsor will have to wait six months with the likely possibility of an early release should it still be trading above $12.00 150 days from now.
Ongoing litigation around the conversion ratio for promote shares given the extensive costs incurred along Digital World’s winding road will still need to be resolved, however. Until then, TMTG goes on the board as 2024’s most successful de-SPAC in a process that has truly been like no other.
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