Stock listing offers windfall for Trump as bond deadline looms
Source: AFP
Shareholders approved a merger Friday to list Donald Trump's social media venture on the stock market, providing a potential financial lifeline to the former president as he faces possible seizure of properties.
After many previous delays, investors voted to approve the merger of Digital World Acquisition and Trump Media & Technology Group -- owner of the Truth Social platform, company officials said on a webcast of the vote.
The action provides Trump with potentially some $3 billion as he faces a $454 million court payment in a fraud case in New York state, although he may not be able to access the funds for several months.
Truth Social was started by the ex-president and current presidential candidate after he was booted from Facebook and Twitter.
Trump's expected bounty stems from millions of shares he owns in Trump Media that are now worth billions with Friday's vote to combine with Digital World, a shell company created specifically to combine with an operating business.
However, such deals require principal shareholders such as Trump to hold the equity for six months before selling.
Trump fury
Shares of Digital World -- which is expected to be renamed in Trump's name -- fell 11.5 percent near 1500 GMT.
Trump, who has clinched the Republican nomination for this year's presidential election, is appealing his $355 million penalty, plus interest, after a New York court ruled that he, his sons and his Trump Organization company lied for years about the value of his assets, deceiving banks and insurers.
Trump lashed out at prosecutors earlier Friday, depicting the New York case as a political conspiracy orchestrated by President Joe Biden, his expected opponent again in November.
"No trial, no jury, no crime, no victim," Trump wrote on Truth Social. "Only a crooked judge and a corrupt, Trump-hating attorney general, who takes her orders directly from the White House.
"Election interference at a level never seen before!"
Despite the real-estate mogul's $2.6 billion estimated net worth -- and his own claims of having cash on hand -- his lawyers say that it has been impossible to come up with the $454 million bond, due Monday.
Typically, such bonds would be underwritten by an insurer or specialized bond company.
But Trump's lawyers say that after approaching 30 such companies, none will take the ex-president's real-estate holdings as collateral.
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Source: AFP
