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The possible entry of Truth Social on Wall Street, a relief for Trump's finances

A company listed on Nasdaq will submit its shareholders to a vote to approve the merger with the former president's platform. It would help pay the $454 million fine.

Truth Social.

(AFP)

Published by
Alejandro Baños

Donald Trump would be close to obtaining significant financial aid to face the sentence he received from a New York court. Justice imposed a fine valued at 454 million dollars after considering that the former president declared his assets fraudulently. This way of being able to liquidate all or a large part of the sanction consists of the entry of Truth Social on Wall Street.

This Friday, the shareholders of Digital World Acquisition Corporation (DWAC) will undergo a vote to approve, or not, the association with Trump Media & Technology Group (TMTG), a company founded and chaired by Trump with which he runs Truth Social, which would see this begin trading on Nasdaq, the second-largest stock market in the country after the New York Stock Exchange. This vote is not the result of chance, since both companies have been flirting with the merger for three years.

Trump would earn more than $3 billion

If the partnership goes ahead, Trump would see his coffers increase exponentially. The merger would bring the former president more than 3,000 million dollars, according to the Associated Press, taking into account that he would be the majority shareholder of this new company that would be born and seeing the value of DWAC shares, currently trading at a figure in the region of 42 dollars per share.

One of the evidences left by this declaration of intent from both companies was reflected in a statement issued by TMTG in September 2022. The company led by Trump criticized the Securities and Exchange Commission for not giving a quick response regarding the possible merger, when the agency usually does not take long to do so when similar operations are proposed to it:

The SEC has needlessly delayed its review of our proposed merger, causing real and unnecessary financial harm to DWAC investors, roughly 90 percent of whom are small, retail shareholders whom the SEC is chartered to protect. Despite its standard practice to provide comments within 30 days, the SEC has failed to give meaningful feedback on DWAC’s registration statement for a stunning 115 days and counting. In the interests of simple fairness, the SEC needs to set aside any improper political considerations and bring its review to a swift conclusion.

What is DWAC?

Digital World Acquisition Corporation is a special purpose acquisition company, a term commonly referred to as a SPAC, that was founded in late 2020. SPACs are fictitious companies that are listed on the stock exchange and whose purpose is to acquire funds and then use them to acquire or merge with another company. On its website, DWAC is defined as "a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses."

Among its shareholders, one name stands out: Marjorie Taylor Greene. The congresswoman, one of the most loyal to Trump, invested between $15,001 and $50,000 in DWAC in October 2021 - a few months before the launch of Truth Social, according to several media outlets such as Forbes.

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