Let's be transparent about all of the acronyms. For years, talks have been on for Digital World Acquisition Corporation (DWAC), a special purpose acquisition company (SPAC), to merge with Trump Media and Technology Group (TMTG) and go public on the NASDAQ under the symbol $DJT. However, it has run into challenges from subpoenas from grand juries, Securities and Exchange Commission (SEC) monitoring, and even reluctance on the part of shareholders.

And that's without taking into account the dubious success of Truth Social, the politicized social media platform that quickly emerged following the ex-president's ban from Twitter. On revenues of less than $4 million, TMTG apparently incurred a net loss of over $49 million in 2023—not exactly impressive figures.

The DWAC-TMTG merger was repeatedly put off due to a number of issues, and it was starting to seem as though the shareholders would eventually walk away when the timing went beyond what was allowed under the SPAC rules.

However, the businesses submitted the required documentation to the SEC today in order to complete the merger. With DWAC stock rising to over $42 per share ahead of this announcement and Trump holding the most shares at $79 million, he may soon hold $3 billion in equity in the new business.

For Trump specifically, the timing is undoubtedly fortunate. In addition to other damages, loans, and pending litigation that could increase his debt, he must deposit hundreds of millions of dollars in bond very, very soon, or else his assets could be forfeited as part of a significant fraud prosecution in New York. If he can sell it, he would be happy to receive a windfall of $3 billion.

There was only one issue: the merger included a "lock-up" provision requiring the board's approval before any officials or significant investors may sell their firm equity for the following six months.

Without a doubt, a sizable number of TMTG's recently public stockholders will sell their shares as soon as feasible. However, Trump would need to sell about 12 million shares at the current price, or about 15% of his entire investment, in order to get the money necessary to pay for his current obligations. Would this be approved by the board?

They will be navigating a tightrope between Scylla and Charybdis: on the one hand, a Trump day-zero sell-off might push the price lower and spark even more selling as investors get rid of their shares before they fall below their original cost. However, if Trump isn't saved, it's possible that he will declare bankruptcy, endangering the business from a new angle.

Using his shares as collateral for a loan with the understanding that they will be sold in six months rather than today is one possible way out for Trump. However, that might depend on someone who is prepared to make an educated guess about the share price in six months - it's not an easy wager to make. In the unlikely event that the company's stock falls below $8, as is frequent for SPACs, Trump's whole share may not be worth the amount he pays in New York.

Although the actual start date of $DJT's trading is unknown, it should happen shortly if all the necessary paperwork is completed. We will be closely monitoring this unique and significant transaction.