- The stock price of Phunware Inc (NASDAQ: PHUN) increased by over 8% pre-market today. This is why it happened.
The stock price of Phunware Inc (NASDAQ: PHUN) increased by over 8% pre-market today. Investors are responding positively to news announced by Digital World Acquisition today.
Digital World Acquisition is taking a special purpose acquisition company (SPAC) that is taking the Trump Media & Technology Group public. Many investors are assuming that Phunware will be involved in the development of the technology platform associated with Trump Media & Technology Group. For Trump’s 2020 campaign app, Phunware – a Texas-based software development company – had partnered with American Made Media Consultants to develop The Official Trump 2020 App. But it has not been confirmed whether Phunware will be involved in this project. Either way — whenever the price of DWAC goes up, Phunware also seems to go up as a sympathy play.
Over the weekend, Trump Media & Technology Group and Digital World Acquisition Corp. (DWAC) announced that DWAC has entered into subscription agreements for $1 billion in committed capital to be received upon consummation of their business combination (the PIPE) from a diverse group of institutional investors. You can read more about it here.
EF Hutton, division of Benchmark Investments, LLC, is serving as exclusive placement agent and capital markets advisor to DWAC.
“$1 billion sends an important message to Big Tech that censorship and political discrimination must end. America is ready for TRUTH Social, a platform that will not discriminate on the basis of political ideology. As our balance sheet expands, TMTG will be in a stronger position to fight back against the tyranny of Big Tech.”
— Donald J. Trump, Chairman of TMTG
“Our focus on delivering public shareholder value drives our decision-making and by accepting these commitments for a strategic infusion of growth capital, we believe the combined company can grow on an incredibly strong foundation. The liquidity that will be provided to the combined company balance sheet, in excess of the up to $293 million (less expenses) that DWAC may provide, should fortify the strategic positioning of TMTG. I am confident that TMTG can effectively deploy this capital to accelerate and strengthen the execution of its business, including by continuing to attract top talent, hire top technology providers, and roll out significant advertising and business development campaigns.”
— Patrick Orlando, Chairman and CEO of Digital World Acquisition Corp.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.