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Hedge fund sells shares in Trump SPAC company DWAC after merger news

The social media app is developed by the Trump Media and Technology Group (TMTG).

Rafael Enrique | LightRocket | Getty Images

After at least one hedge fund sells shares in SPAC The company has announced plans to merge with a social media company Former president plans Donald Trump..

The fund told CNBC on Friday that Lighthouse Investment Partners, one of at least nine hedge funds holding SPAC shares, abandoned its holdings in Digital World Acquisition after learning of the merger.

“The lighthouse is unaware of the pending merger and no longer holds an unlimited stake in SPAC,” the fund said.

According to a regulatory filing on September 30, the lighthouse owned 3.2 million shares, or 11.2% of the SPAC.

Sold by Digital World Acquisition Corp. Was done as seen. Following news of the merger, stock prices rose sharply on Thursday.

DWAC stock Over 100% surge on Friday After the stock price more than quadrupled in the previous session.

Relationship with Trump, who was accused of having a hedge fund sold to record profits from DWAC’s stock, or being accused of inciting a deadly parliamentary riot on January 6 after being accused twice as president. It’s not clear if he was worried about the risk of. His supporters.

According to regulatory filings, DE Shaw owned 8% of the SPAC, or 2.4 million shares, and ARC Capital owned nearly 18%, or 6.6 million shares. Saba Capital Management, Highbridge Capital Management, Lighthouse Investment Partners, K2 Principal Fund, Atw Spac Management, Boothbay Fund Management, and RG Capital Management were also early major investors in SPAC.

Hedge fund holdings in DWAC are based on regulatory filings from September before the merger target was announced and do not necessarily reflect current investment.

Highbridge Capital Management and AtwSpac Management declined to comment, and the rest of the hedge funds did not immediately respond to CNBC’s request for comment.

One of the funds listed as DWAC’s leading investor is ARC Global Investments II, LLC. The managing member of ARC Global is listed in the regulatory filings as Patrick Orlando, who is also the CEO of DWAC.

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On Thursday, with an 8-K submission to the Securities and Exchange Commission, DWAC became DWAC Merger Sub Inc, a wholly owned subsidiary of DWAC. He said he had signed an agreement and plans for a merger with Trump Media & Technology. Group and ARC Global Investment II.

SPAC is a special purpose acquisition company, also known as a blank check company, that raises funds from the public equity market and uses the cash to merge with private companies that do or plan to do business.

The shares of the merged company will be traded under the stock quotes created by SPAC.

As a general rule, SPAC investors do not know the identities of the other companies involved in the merger.

Trump Company, Trump Media & Technology Group, Unlaunched Said in the announcement on Wednesday Its “mission is to fight the Silicon Valley’Big Tech’company, which has created rivals for the liberal media consortium and used unilateral power to silence the opposition of the United States. “

Mr. Trump was banned by Facebook earlier this year after being accused of causing an invasion of his favorite social media platform, Twitter, and the Houses of Parliament.

This is breaking news. Please check for updates.

Hedge fund sells shares in Trump SPAC company DWAC after merger news

Source link Hedge fund sells shares in Trump SPAC company DWAC after merger news

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