A Delaware judge ruled that Trump Media breached an agreement with investor ARC Global, requiring the company to grant ARC a larger share of its stock. Vice Chancellor Lori Will ruled that Digital World Acquisition Corp. underestimated the stock owed to ARC Global in the merger that took Trump Media public. ARC's Class B shares in DWAC were intended to convert to Class A at an equal ratio following the merger with Trump Media, but the issuance of more Class A shares changed the conversion ratio. The ruling comes just days before ARC and other insiders, including Donald Trump, can sell their shares in the company.
Category
🗞
NewsTranscript
00:00It's Benzinga, and here's what's on the block.
00:02A Delaware judge ruled that Trump Media breached an agreement with investor ARK Global, requiring
00:07the company to grant ARK a larger share of its stock.
00:10Vice Chancellor Lori Will ruled that Digital World Acquisition Corp underestimated the stock
00:15owed to ARK Global in the merger that took Trump Media public.
00:19ARK's Class B shares in DWAC were intended to convert to Class A at an equal ratio following
00:24the merger with Trump Media, but the issuance of more Class A shares changed the conversion
00:29ratio.
00:30The ruling comes just days before ARK and other insiders, including Donald Trump, can
00:34sell their shares in the company.
00:36For all things money, visit Benzinga.com.