Trump-Linked Digital World Acquisition Corp Nears $50M Financing Deal: Report – Digital World Acq (NASDAQ:DWAC)


Digital World Acquisition Corp DWAC, the Special Purpose Acquisition Company set to take former President Donald Trump’s social media platform public, is reportedly on the verge of securing a $50 million financing deal.What Happened: The financing deal, which is based on convertible notes, is likely to be announced in the coming days. The funds will aid DWAC in its efforts to complete its merger with Trump Media & Technology Group, the entity that owns the social media platform Truth Social, reported Reuters.Investment firms Anson Funds, All Blue Capital, and Mangrove Partners are reportedly interested in buying the convertible notes on offer. However, Reuters sources warned that the deal’s timing and composition might still change.In the previous month, DWAC revealed that it was raising $50 million in convertible notes after canceling a $1 billion private-investment-in-public-equity (PIPE) transaction. The company is now waiting for SEC clearance to enable its shareholders to vote on the merger with TMTG.See Also: Jim Cramer Likes Trane Technologies ‘Very Much’ But Carrier is ‘Undervalued Right Now’Why It Matters: The financing deal comes at a crucial time for DWAC and TMTG. In November 2023, DWAC announced a filing of Amendment No. 1 to its Form S-4 Registration Statement, marking a significant step in the business combination process with TMTG, as reported by Benzinga.Last month, DWAC shares surged after Florida Gov. Ron DeSantis ended his presidential campaign and endorsed Trump, as per a Benzinga report. This endorsement boosted investor confidence in Trump’s political resurgence and its potential impact on Truth Social’s value.Furthermore, Trump’s potential appearance on the 2024 election ballot, currently under consideration by the Supreme Court, could further influence investor sentiment and the value of Truth Social, as highlighted by a Benzinga article.Price Action: Following the news on Thursday, DWAC’s shares saw a 4.4% increase to $47.66. The shares gained another 2.18% in the after-hours trading.Since January 15, when the former president won the Iowa caucus, DWAC shares have almost tripled. Photo via ShutterstockRead Next: Trump Says Anheuser-Busch Deserves Second Chance After Conservative Backlash Rocks Bud Light

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