Marjorie Taylor Greene invested up to $ 50,000 in Trump SPAC before her stock plummeted

By Matt Egan, CNN Business

Georgia Rep Marjorie Taylor Greene bought up to $ 50,000 in shares of shell company merging with former President Donald Trump’s new media company, financial disclosure says form.

Greene, a Republican and Trump supporter with a history of conspiracy theories, on Friday bought shares of Digital World Acquisition Corp. soar to breathtaking levels.

A few days later, the Trump SPAC (Special Purpose Acquisition Company) dived in value.

The disclosure form, dated Tuesday, indicates that Greene purchased between $ 15,001 and $ 50,000 of shares. The news of the purchase has already been reported by congressrading.com, which tracks the business activity of politicians.

Last week, Trump Media & Technology Group, chaired by the former president, announced that it would launch a new social media platform to “oppose the tyranny of Big Tech.”

The media company has agreed to combine with Digital World Acquisition Corp., a blank check company that exists only to bring private companies into the stock exchange through what is called a PSPC.

Digital World shares quadrupled on the first day of trading after the deal was announced. On Friday, the Trump SPAC climbed to $ 175, a staggering 1,657% above its closing price on Wednesday.

This is the day Greene bought some stock. The Trump SPAC has piqued the interest of traders on WallStreetBets, the Reddit page behind GameStop’s rise to power.

But the rally quickly fizzled out. Digital World fell 11% on Monday, then lost 30% on Tuesday. It is currently trading at around $ 60, down two-thirds from last week’s high.

IPO watchers said the spike was highly unusual – especially because little is known about the Trump company.

The latest filings do not indicate how much revenue – if any – the Trump Media & Technology Group is generating. But it’s likely to be minimal as the new social media platform has yet to launch.

PSPC merger announcements normally contain financial projections and details of the planned capital structure. Still, the Trump deal did not include all of this, offering investors a press release that criticized Big Tech and a presentation to investors with no income estimate.

Trump’s companies have filed four bankruptcies, all focused on the casinos he owned in Atlantic City.

Trump’s last IPO was in 1995, when Trump Hotels & Casino Resorts went public. The the casino company loses money every year it was public and filed for bankruptcy a decade later.

Source link