Digital World Acquisition Corp. (DWAC) Digital World Acquisition Corp. is a blank check company engaged in effecting a merger, asset purchase, stock acquisition, or identical business merger. The company is intended to focus on combination with a principal technology-based company.
The price of DWAC stock during the regular trading on February 18, 2022, was $84.3 with a decline of 1.37%. At last check in the premarket on February 22, 2022, the stock surged by 18.32%.
DWAC: Events and Happenings
On February 21, 2022, multiple media sources stated that the app store of Apple started permitting the downloads of the TRUTH Social app. People who signed up for the app earlier received automated downloads. TRUTH Social app is the ex-president of Donald Trump’s social media startup. On December 04, 2021, DWAC and Trump Media and Technology Group Corp. updated about their entry into a subscription contract valued at $1 billion. Both the companies agreed upon their committed capital to be received upon consummation of business merger.
DWAC: Key Financials
On November 22, 2021, DWAC released its financial results for the quarter ended September 30, 2021. Some of the important highlights are discussed below.
Revenue
No revenue was reported in the quarter in 2021.
EPS
Basic and diluted net loss per share in the quarter of 2021 was $0.15 million or $0.01 as compared to $0.16 million or $0.02 in the same period of 2020. The company observed an increase in EPS over the year.
On October 20, 2021, DWAC and TMTG announced their entry into a definitive deal for a business merger resulting in TMTG’s status of becoming a publicly listed company. The preliminary enterprise value of TMTG was $875 million, with a possible added earnout of $825 million. On September 8, 2021, DWAC informed about the closure of its preliminary public offering of 25,000,000 cohorts at a public offering price of $10.00 per unit. The total gross proceeds from the offering were $287 million.
Conclusion
DWAC stock is 747% up the past five months period when it began trading under Nasdaq Global Market. The current premarket stock hike is likely due to multiple media sources reports regarding the allowance of the TRUTH Social App downloads.
