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Saturday, December 4, 2021

Trump social media group raises $1 billion from undisclosed investors - Axios

Donald Trump's social media startup on Saturday announced that it secured $1 billion in new investment as part of its ongoing efforts to become publicly traded via a blank check company.

Between the lines: None of the investors were identified, which is highly unusual for this sort of transaction.

Details: This is a so-called PIPE investment at around $34.36 per share.

  • That's a 20% discount to the SPAC's 5-day trading average through Dec. 1, but still much higher than where a typical SPAC trades before its merger is complete.
  • The PIPE's per share price could be adjusted up or down, based on how the stock performs once the merger closes.

What to watch: Trump Media & Technology Group still has not named a CEO, although the former President is listed as chairman, and does not plan to publicly launch any products until early next year.

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