(New York) The company to give birth to the future social network of former President Donald Trump and the company with which it is to merge to go public said Saturday that a group of institutional investors had committed to bring in $ 1 billion.
This sum would be in addition to the $ 293 million already recovered by the specific acquisition company Digital World Acquisition Corp when it arrived on Wall Street in September, details a press release.
By removing the transaction fees, Trump Media & Technology Group should recover $ 1.25 billion to finance the launch of the social network of the former tenant of the White House, adds the document.
The two companies did not say who the investors pledged to provide the funds were.
Mr. Trump announced at the end of October that the company to support its future social network would merge with Digital World Acquisition Corp, a specific acquisition company, or “Spac” in English. This fashionable financial instrument is like an empty shell raising funds on the stock market by committing to get closer in the following months to a promising company, thus allowing the latter to enter Wall Street without the traditional process.
Called “Social Truth”, the future platform was presented by the former president as an alternative to Facebook, Twitter and YouTube from which he is banned for having incited his supporters to violence before the assault on Capitol Hill on January 6.
Currently available for pre-order on the App Store, it should theoretically be launched in the first quarter of 2022.
Driven by the interest of retail investors, the share of “Spac” had skyrocketed after the announcement of its merger with Mr. Trump’s company, from around $ 10 to a peak of $ 175 in two days.
However, it fell back after this initial craze and closed at $ 45 on Friday, giving it a valuation of $ 1.67 billion.