Mar 21, 2023 - Economy

DWAC shares spike on Trump arrest prediction

Data: Yahoo Finance. Chart: Axios Visuals.
Data: Yahoo Finance. Chart: Axios Visuals.

Digital World Acquisition Corp., the blank check company seeking to acquire Truth Social parent company TMTG, saw its shares soar 11% on Monday.

Behind the scenes: The apparent driver was former President Trump's claim of his impending arrest, which investors seem to believe could make Trump's sagging social media platform more popular.

  • Bloomberg recently reported that TMTG laid off some staffers, including its CTO.
  • Trump, who recently hit the 5 million follower mark on Truth Social (after more than a year in operation), is now reinstated on Facebook, Twitter and YouTube. He still hasn't tweeted but has posted on Facebook and YouTube.
  • DWAC originally planned to acquire TMTG last year but had to secure shareholder extensions due to ongoing government investigations into the merger.

Balance sheet: DWAC last May said in a regulatory filing that TMTG's $15.36 million in new bridge financing meant that it "will have sufficient funds to meet its liabilities as they fall due for the 12-month period ending April 30, 2023."

  • Axios emailed TMTG to inquire about the company's financial viability after April.
  • The reply from TMTG spokesperson Shannon Devine: "By failing to see that our forecast was a standard 12-month projection up to April 2023, Axios reporters are either pretending to be illiterate or demonstrating their actual illiteracy."
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