The company that is expected to give rise to the future social network of former President Donald Trump and the company he merged with to enter the stock exchange on Saturday (4) said that a group of institutional investors have pledged to contribute one billion US dollars.
That would add to the $293 million that “Spac” Digital World Acquisition Corp. already recovered upon its arrival on Wall Street in September, details a statement.
The document added that by subtracting transaction costs, Trump Media and Technology Group is expected to recover $1.25 billion to fund the launch of the former president’s social network.
The companies did not specify which investors had committed to providing the money.
Trump announced in late October that the company responsible for managing his future social network would merge with Digital World Acquisition Corp., a career-defining acquisition company, or “Spac” in English.
This financial instrument is an empty container that raises money on the exchange, and is committed to approaching a promising company in the coming months, allowing it to enter Wall Street without the traditional process.
Dubbed the “Truth Social” as an alternative to Facebook, Twitter and YouTube, the former president was banned from using it to incite his supporters to attack the Capitol building on January 6.
It is currently available for pre-sale on the App Store, in theory it should be released in the first quarter of 2022.
Driven by interest from private investors, shares of Spac soared after announcing its affinity with Trump, jumping from about $10 a share to a peak of $175 in two days.
However, after the initial enthusiasm, it fell again and closed on Friday at $45, which earned it a valuation of $1.67 billion.
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