According to the Zhītōng Cáijīng APP, DJT.US signed an asset acquisition agreement on Wednesday to acquire almost all of WorldConnect Technologies (WCT) or its subsidiary's assets through an all-stock transaction.
This transaction aims to provide linear television streaming services for the media company's planned content distribution network (CDN)- initially through the Truth Social platform and later through an independent application.
In April of this year, DJT.US announced plans to launch a video streaming platform and stated that it will introduce live TV into its Truth Social network in three phases.
The announced acquisition mainly involves certain agreements, including option agreements between WCT, Perception Group, Perception TVCDN, and Forum Računalništva (FORA), as well as certain CDN agreements.
DJT.US is expected to obtain a global non-exclusive perpetual license to new CDN technology intended for its content distribution network from Perception Group and its global affiliates. The agreement also includes the accidental opportunity for DJT.US to directly acquire Perception in the future.
At the same time, the operation of Perception in the areas that may compete with DJT.US on the US market will face certain restrictions within five years.
This transaction will be financed through the issuance of up to 5.1 million shares of DJT common stock and $17.5 million and is expected to be paid within three years upon completion of the transaction.
It is expected that the transaction will be completed on the day when the company implements the Perception software and network, and all backend API services are widely available on iOS, Google/Android, and web media services and enabled for streaming from at least one datacenter.
In addition, DJT.US has finalized a long-term equity financing arrangement to support its expansion over the next three years.
Under the standby equity purchase agreement, the company will have the right to issue up to $2.5 billion of common stock to Yorkville Advisors within three years. Yorkville will pay a subscription price per share that is 2.75% lower than the market price.
DJT.US plans to strategically use the agreement to raise and deploy capital for its global strategy.