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Shares of Digital World Acquisition Corp. soared about 25% on Monday after the approval of a merger between the shell company and the social media group owned by former President Donald Trump.
DWAC shareholders voted Friday to approve the combination between the special purpose acquisition company, or SPAC, and Trump Media & Technology Group, the owner of the social media platform Truth Social.
Shares in the merged company will begin publicly trading Tuesday under the ticker symbol DJT, Trump’s initials.
The company’s debut on public markets could provide a financial boost to Trump, who is expected to own 80 million shares, which could be worth around $3 billion or more, in the new company.
Under the deal’s current terms, Trump will not be allowed to sell shares in the company for at least six months.
However, the board of directors could vote to permit Trump to sell shares earlier. The board is expected to include several people close to Trump, including his son Donald Trump Jr. and Trump’s former trade representative, Robert Lighthizer.
A potential windfall from selling shares could help pay for Trump’s legal bills and damage judgments of over $500 million in three separate cases.
Monday’s rise comes after the stock fell nearly 14% Friday after DWAC shareholders signed off on the merger. The stock has soared more than 150% this year but has lost about 20% since hitting its 52-week high on Jan. 23.