Exclusive-Trump’s media deal partner is closing in on $50 million in funding sources

By Anirban Sen

(Reuters) – Digital World Acquisition Corp, the blank-check acquisition company that agreed to take former U.S. President Donald Trump’s social media platform public, is nearing a $50 million financing deal, people familiar with the matter said on Thursday.

The deal, which could be announced in the coming days, is based on convertible notes and will help finance DWAC as it tries to complete its merger with Trump Media & Technology Group (TMTG), owner of social media platform Truth Social. said.

DWAC shares ended Thursday up 4.4% at $47.66 on the news. They have nearly tripled since Jan. 15 — when Trump won the Iowa caucus en route to the Republican nomination for president — as investors bet his re-emergence as a major political figure will make Truth Social more valuable.

Investment firms Anson Funds, All Blue Capital and Mangrove Partners have offered to buy the convertible notes on offer, the sources said, warning that the timing and composition of the deal could still change.

The sources requested anonymity because details of the deal discussions are confidential. DWAC CEO Eric Swider declined to comment. Representatives for Anson Funds, All Blue Capital and Mangrove Partners did not immediately respond to requests for comment.

DWAC announced last month that it was raising $50 million in convertible notes after canceling a $1 billion private-investment-in-public-equity (PIPE) transaction.

DWAC agreed to merge with TMTG in October 2021, but failed to complete the deal by the September 2022 deadline as U.S. financial regulators scrutinized DWAC’s disclosures to investors. That gave the PIPE investors the…

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