Digital World Acquisition Corp. (NASDAQ: DWAC) stock rose after the company announced that it had filed a registration statement on Form S-4 with the SEC in connection with DWAC’s proposed business combination with Trump Media & Technology Group Corp. (TMTG).
DWAC was trading at $44.7 at the time of writing, up 6.5%. The stock is now down roughly 74% from its highs.
DWAC and TMTG signed a definitive merger agreement on October 20, 2021, and today’s filing is a significant step toward completing their de-SPAC. The deal is expected to be completed in the second half of 2022.
The transaction is expected to provide TMTG with approximately $1.25 billion in net proceeds at the close, assuming no DWAC stockholder redemptions. These proceeds will be used to fund the development and expansion of TMTG’s products, including the TruthSocial app.
Digital World is a blank check company formed in December 2020 to form a business combination with one or more other companies. In September 2021, Digital World completed its initial public offering with an IPO price of $10 per share.