Digital World Acquisition Corp., the company planning to take Trump Media and Technology Group public, is facing investor concerns about a potential failed merger with former President Donald Trump’s company.
The Financial Times reported Tuesday that DWAC Chief Executive Patrick Orlando is negotiating with investors who said they would back the company through a private investment in public equity, or PIPE, deal.
The $1 billion deal was set to expire Tuesday. If it falls apart, it would mean a lot less money for Trump Media, even if it did end up going public through a merger with DWAC. Orlando was pushing for a 10-day extension, according to the newspaper.
The PIPE investors are hoping to bring down the minimum conversion price for their preferred stock from $10 to as low as $2, the FT reported, citing a person involved in the talks. That would boost their potential profit on the deal, even in the worst case scenario, …