Tuesday, December 6, 2022

SPAC tied to Trump’s media venture seeks investor support -sources

People familiar with the matter said on Monday that Digital World Acquisition Corp (DWAC.O) is pitching prospective investors to back private investment in public equity (PIPE) transactions supporting its special purpose acquisition company (SPAC) merger with former US President Donald Trump’s social media venture.

The conversations are still in the early stages, according to the sources, and hedge fund investors have been pitched for investment in the last few days. According to them, DWAC intends to sell PIPEs for well over $10 a share. The majority of PIPEs for special purpose acquisition businesses are offered at a price of $10 per share.

Trump Media & Technology Group and Digital World were not immediately available for comment.

According to a regulatory filing last month, Trump and other Trump Media & Technology Group stockholders will own 69 percent of the combined company after the merger with the Miami-based blank-check firm.