Donald Trump, DWAC and Phunware Shares Drop in Auction

Former US President Donald Trump at a rally in Perry, Georgia, USA, September 25, 2021.

Dustin Chambers | Reuters

On Tuesday, an hour before trading began, Trump issued a lengthy statement on his plans for a new social media app he intends to launch and other aspects of his new company.

“To counter the censorship of large technologies, we are creating the Big Tent platform: Truth Social,” Trump said. “We invite people of all political views and different perspectives to come and take part in the great American debate again. This is what our country should be. “

“Unlike Big Tech platforms, there will be no shadow ban, throttling, demonetization or hacking of algorithms for political manipulation,” he added. “We will not treat users like laboratory rats for social experiments, or call alternative views ‘disinformation’.”

Trump also said the new company will launch a video-on-demand streaming service “that will compete with the increasingly ‘awakening’ and politicized ‘entertainment’ programming created by major tech and Big Media players, ‘and sees’ opportunities to create ‘tamper-proof’ cancellation of programs “. “Alternatives in other key areas, from web services to payment processing.”

Anyway, Trump has a long history of over-promising new ventures, and those ventures are failing. Among his biggest arrests were several casinos in Atlantic City, New Jersey, Trump Airlines, Trump University, Trump Mortgage Company, and Trump Steaks.

Trump’s plans to build a social media app came a few months after he was blocked by Twitter and Facebook for inciting his supporters into a deadly Capitol riot on January 6.

Also on Tuesday, Phunware said it would sell up to 5.6 million additional shares “on market offer”, bringing the total outstanding shares to nearly 90 million, the company said in a regulatory filing Tuesday.

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The offer will bring Phunware $ 48.54 million at $ 8.74 a share – nearly $ 4 more than the level it traded at early Tuesday.

In a statement filed with the Securities and Exchange Commission on Tuesday announcing the offer, Phunware said, “The trading price of our Common Shares has increased significantly recently, possibly due to recent earnings forecasts for our acquisition of Lyte Technology Inc. and / or speculation about our ties to Trump’s re-election campaign. “

Before the explosive rally last week, the stock traded around 90 cents apiece.

Despite the drop in DWAC’s price, its shares are still trading at around $ 70 a share, seven times the price of SPAC’s $ 10 IPO.

DWAC was also still hotly debated on the WallStreetBets Reddit chat on Tuesday, with the ticker in the top 5 most popular mentions on the platform, according to alternative data provider Quiver Quantitative.

One of the most commented posts on Tuesday said, “How are my $ DWAC bag holders doing?”

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