Benzinga - A SPAC merger plans to bring former President Donald Trump’s new social media platform and media assets public. The SPAC saw a huge increase in its share price in 2021 after the deal was announced.
A member of the U.S. Congress was one of the people who bought shares of the SPAC. Here’s a look at the potential loss the Congress member now has.
What Happened: A SPAC merger to bring Trump Media & Technology Group, the parent company of social media platform Truth Social, public was announced in late 2021. The deal merges Trump Media & Technology Group with Digital World Acquisition Corp (NASDAQ: DWAC).
The SPAC deal has faced several setbacks and investigations and has not been completed yet.
Investors flocked to the SPAC in 2021 and the common shares were one of the top-performing IPOs of the calendar year.
One of the investors who bought in early on DWAC shares after the deal was announced was U.S. Rep Marjorie Taylor Greene, a Republican from Georgia.
A filing on Oct. 26 disclosed that Greene bought $15,001 to $50,000 worth of DWAC shares on Oct. 22, 2021. Greene’s office later confirmed the trade.
“This transaction was reported in compliance with House rules and provides all required details about the transaction,” Greene’s office told CNBC at the time.
According to a tweet on the post about the purchase, Greene paid an average of $94.20 for the DWAC shares. Shares of Digital World Acquisition traded between $67.96 and $118.80 on the day Greene made her purchase.
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DWAC Performance Since Greene Bought: Digital World Acquisition shares had a nice run-up in February before falling through the rest of 2022. Shares of the SPAC are down 67% year-to-date and continue to face pressure over the deal not being finalized and pushed through before a merger agreement deadline.
Without completing the deal by the deadline, the SPAC could be forced to liquidate shares at net asset value, which would value them closer to the $10 level.
The Congress disclosure does not require the exact price or exact amount of shares purchased to be made public. Instead, we know that Greene purchased $15,000 to $50,000 worth of shares and have a report that the average price was $94.20.
• Based on the total purchase price and the share price listed above, Greene would have bought between 159.23 and 530.79 shares. The purchase would now be worth $2,683.03 to $8,943.81 and down 82.1%.
• If Greene bought shares at the intraday low price of $67.96 on the day of the purchase, she could have bought between 220.72 and 735.73 shares. The $15,000 to $50,000 investment would now be worth $3,719.13 to $12,397.05 and down 75.2%.
• If Greene bought shares at the intraday high price of $118.80 on the day of the purchase, she could have bought between 126.26 and 420.88 shares. The $15,000 to $50,000 investment would now be worth $2,127.48 to $7,091.83 and down 85.8%.
Greene has not disclosed a filing that she has sold the shares, which means she still owns the position of DWAC. As an avid Trump supporter, Greene could also be holding onto the position to show support for the former president.
Greene’s $15,000 to $50,000 investment is now worth significantly less and the Congresswoman is currently sitting on a huge losing position.
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