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Matt Levine’s Money Stuff: The Trump SPAC Pitch Is Weird

Dec. 7, 2021, 6:01 PM

Trump SPAC PIPE

Yesterday we discussed the $1 billion private investment that Trump Media & Technology Group is planning to raise from investors when it merges with Digital World Acquisition Corp., a special purpose acquisition company that is taking TMTG public. The basic point was that, in this $1 billion PIPE (private investment in public equity) investment, TMTG will sell stock to hedge funds for $1 billion, at a 40% discount to the trading price of the stock. The hedge funds will then immediately turn around and sell that stock to public retail investors, very much not at a discount. ...