The SPAC Digital World (DWAC) is offering cash bonuses and earnout shares to the Trump Media and Technology Group (TMTG) to entice them to stick with their merger agreement. Digital World is offering cumulative cash bonuses of $6.38 million to attract and retain TMTG personnel. They have also announced the offering of 40 million additional earnout common shares to TMTG shareholders. In a separate announcement, Digital World revealed that it has secured $50 million in new funding and has entered into warrant subscription agreements with institutional investors.
These new offerings come as Digital World’s planned merger with TMTG has been delayed for nearly two years due to ongoing federal investigations into improper disclosures. The SEC has settled with Digital World, but FINRA has not provided a similar reprieve. TMTG is also being investigated for potential money laundering violations. It remains uncertain if TMTG will proceed with its plans to go public with Digital World. Truth Social, TMTG’s platform, has seen limited activity with only around 0.6 million active users.