Trading in Trump-linked SPAC halted as shares soar on social media deal
Trading in Trump-linked SPAC Digital World Acquisition Corp. (DWAC) was halted after shares soared following the announcement of former President Trump’s new social media network, Truth Social.
Digital World Acquisition’s stock was the most actively traded stock on Fidelity, as well as the consolidated tape of the New York Stock Exchange and Nasdaq listings, CNBC reported.
The company’s stock skyrocketed more than 130 percent before trading was halted for a second time on Thursday, the outlet reported. At one point, the stock surged by up to 160 percent.
More than 260 million shares of DWAC had been traded by midday.
Trump announced the launch of Truth Social on Wednesday night, saying it would “stand up to the tyranny of Big Tech.”
A beta launch of the site for “invited guests” is scheduled for November, and the full launch is expected in the first quarter of 2022.
As part of the launch, the former president announced that Trump Media & Technology Group (TMTG) would enter a definitive merger agreement with DWAC that will allow TMTG to become a publicly listed company, subject to regulatory approval.
The planned merger values TMTG at an initial $875 million, with the potential of $825 million in additional earnout for a cumulative valuation of $1.7 billion, the press release said.
DWAC was founded in December for the purpose of acquiring or merging with other companies.
The former president has been banned from most social media networks since the Jan. 6 attack that saw a mob of his supporters breach the Capitol. Since leaving office, he operated a blog for roughly a month before shutting it down. He has mostly communicated with the public via emailed statements in recent months.