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Donald Trump's Stock Spikes on Important Deadline


6 days ago 15
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Shares of Digital World Acquisition Corp swung wildly in value on Thursday ahead of a critical shareholder vote to merge with Trump Media & Technology Group.

The Friday vote, which experts told Newsweek should pass, could significantly impact former President Donald Trump's financial interests, and comes as Trump publicly grapples with securing a bond for a $454 million civil judgment.

If the Digital World Acquisition Corp (DWAC) shareholders give the green light on Friday's vote, the former president's Trump Media & Technology Group (TMTG) will become a publicly traded entity, marking the end of a multi-year bid to put the company on the stock market.

The merger would see DWAC rebranded as Trump Media & Technology Group Corp, giving Trump a stake that would be valued in the billions at current share prices.

According to the latest ownership document filed with the SEC last month, while the former president is poised for a potential windfall that would see him own 78,750,000 shares (58.1 percent of the public float), equal to $3.37 billion at current prices, it will not come easy.

Earlier this week, DWAC filed a lawsuit against its largest investor, ARC Global Investments II, which has cast a shadow over the proceedings.

The suit alleges that ARC and managing member Patrick Orlando are reneging on their contractual commitment to support the merger, despite having previously stated they believe "in the merits" of the deal. The refusal, DWAC alleges, is a last-ditch effort to secure unwarranted concessions for Orlando.

The complaint also accuses Orlando of attempting to influence other shareholders and threatening the transaction, potentially costing DWAC millions and risking the company's dissolution if the merger does not proceed.

DWAC is urgently requesting that a judge compel ARC to vote in favor of the merger. "ARC's refusal to vote is a tactical ploy to force improper concessions at the eleventh hour—it has nothing to do with ARC's position on the merger itself," the complaint reads.

"There are no exceptions despite ARC's managing member Patrick Orlando's desire to hold ARC's vote hostage for his personal financial gain," it reads.

The shareholder vote, critical to finalizing the merger, has been placed under a microscope as ARC's participation—or lack thereof—could dictate the merger's fate. If approved, it could increase Trump's financial portfolio at a time when he's refusing to sell his assets to cover his bond.

The former president outlined his predicament on Truth Social. "If I sold assets, and then won the Appeal, the assets would be forever gone," he said. "Also, putting up money before an Appeal is VERY EXPENSIVE. When I win the Appeal, all of that money is gone, and I would have done nothing wrong."

Trump's financial standoff comes despite a GoFundMe effort, which has fallen drastically short of its $355 million target, bringing in less than $2 million in the month that it has been live.

Investment strategist Matt Tuttle, founder of Tuttle Capital Management, told Newsweek on Thursday that he believes the merger will indeed be approved, offering Trump potential liquidity.

"He could theoretically use his stake in some way, either get someone to lend on it, [or] have the company allow him to sell," Tuttle said.

Tuttle added: "I think given the choice of selling some stock or having [New York] take over his property, it's an easy call," implying Trump would prefer liquidating part of his DWAC stake rather than succumb to the civil penalties brought on by New York State Supreme Court Justice Arthur Engoron after New York Attorney General Letitia James filed and eventually won the lawsuit.

The implications of Friday's vote reach beyond the immediate merger. DWAC is the "election stock," Tuttle previously told Newsweek, suggesting that any approval would mark Trump's amplified presence in the public market, an arena where he has had a checkered past with his previous venture, Trump Hotels and Casino Resorts, which ultimately filed for bankruptcy.

The stock's trajectory in the coming days may serve as an indicator of market sentiment toward the stability and prospects of the proposed merger and, by extension, the future of Trump's business venture with Truth Social.

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Former President Donald Trump speaks during an event at Mar-a-Lago in Florida. Post-merger, Trump would own 78,750,000 shares (58.1 percent of the public float), equal to $3.37 billion at current prices. Joe Raedle/Getty Images

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