Digital World Acquisition in an amended S-4 noted that shareholders in merger partner Trump Media & Technology Group would receive 40 million earnout shares if the combined company’s stock hits certain price thresholds. That’s in addition to the deal’s $875 million consideration, according to the filing. Holders of $50 million in convertible notes the SPAC announced last week would not be eligible to receive earnout shares.
The initial payout for the acquisition is still a 33% drop from the approximately $1.3 billion expected when Digital World had a $1 billion PIPE to go with its $293 million in trust. The SPAC last month terminated the remainder of the PIPE, although that was after some investors pulled out due to delays in completing the deal, which was announced in October 2021.
Ex-president Donald Trump owned about 90% of the company in April 2023. Read more.
