The parent company of the social network donald trump, Social Truth, will be listed on the stock exchange Wall Street starting this Tuesday, which could generate income of US$3 billion for the former president in the medium term.
In a document from the Securities and Exchange Commission (SEC), the company indicated that the network will be listed on the Nasdaq index through Trump Media & Technology Group (TMTG), a merger between Truth Social and the company Digital World Acquisition Corp ( DWAC, instrumental company to promote stock market operations) that took place last Friday.
On the New York stock market, the company will be listed under the symbol DJT, the initials of the Republican. Following the news, DWAC shares rose more than one twenty%recovering the losses it suffered on Friday after the approval of the merger.
Truth Social, which is a knockoff of X (formerly Twitter) on which Trump posts daily, is expected to begin trading at a valuation of $5.5 billion.
Meanwhile, Trump’s participation of approximately 60% of the social network is valued at about US$3 billion, depending on how the shares are traded.
However, Trump will be prohibited from selling shares in the merged company for at least six months – preventing him from using the money from his sale to fight his numerous court cases – but there is a possibility that the board of directors will vote to allow for Trump to sell shares before that date.
Truth Social’s IPO comes in a turbulent week for the Republican candidate in the upcoming US elections. On Monday, a New York appeals court allowed him to post less bail than originally set in a civil fraud case.
Now, Trump must pay bail of US$175 million within ten days (instead of US$464 million), while the appeal for the sentence that requires him to pay US$454 million is resolved.
In addition, today it became known that his criminal trial in New York for 34 crimes related to irregular payments to porn actress Stormy Daniels in 2016 will begin on April 15, as announced by the judge in the case, Juan Merchan.
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Source: Gestion
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