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Shareholders of Digital World Acquisition Corp (NASDAQ:DWAC), the SPAC that’s planning to take Trump Media & Technology public, will vote Friday on whether the deal should go through.
If shareholders greenlight the SPAC deal, Donald Trump will own a major stake in the combined company. The stake could be valued at over $3B based on DWAC’s stock price, which has more than doubled in value this year, and rose 4% this month.
However, Trump can’t sell his shares easily for six months due to the deal’s lock-up period.
The shareholder vote comes amid multiple legal issues. DWAC (DWAC) filed a lawsuit against its biggest investor, ARC Global, to force it to vote in favor of the merger.
Trump Media was also sued by United Atlantic Ventures co-founders, who alleged that it tried to dilute the stake of its founding partners.
Friday’s vote is also important in light of Trump seeking to put a $454M civil fraud penalty on hold while he appeals. “If I sold assets, and then won the appeal, the assets would be forever gone,” Trump said on Truth Social. “Also, putting up money before an appeal is VERY EXPENSIVE.”
SA analyst Giesbers Investment Strategy believes traders could make money from DWAC in the short term, but warns of volatility ahead.