Trump Media & Technology Group Corp (NASDAQ:DJT) stock looks volatile at premarket trading on Friday after it inked a deal Thursday to acquire critical assets for its planned content distribution network.
Trump Media proposes to finance the deal by issuing 5.1 million shares and $17.5 million over three years.
Trump Media has secured a standby equity purchase agreement (SEPA) with YA II PN, Ltd., managed by Yorkville Advisors, to further its growth strategy.
Also Read: Trump Media Faces Stock Dilution Concerns After Raising $105 Million Through Warrants
This agreement allows Trump Media to issue up to $2.5 billion in shares over three years.
The new network will stream via the Truth Social platform and later through standalone apps.
Trump Media expects non-exclusive, perpetual licensing rights from Perception Group, Inc., for CDN technology.
Perception will also face five-year restrictions in the U.S. market, preventing competition with Trump Media. This agreement includes a potential future purchase option for Trump Media to acquire Perception outright.
The streaming service will offer news shows, religious channels, and family-friendly content that has been canceled or is at risk of cancellation.
Meanwhile, Trump Media's majority stockholder, former President Donald Trump, has challenged President Joe Biden to a debate with no moderators and fewer rules to prove Biden's "competence or lack thereof."
He criticized the structured format of their previous debate hosted by CNN, which drew 47.9 million viewers.
Trump believes this format will give Biden a platform to explain his policies, the New York Times reports.
He added that this debate would test Biden's competence under pressure.
Following the first debate on June 27, several key Democratic figures and editorial boards have called for Biden to withdraw from seeking reelection.
Price Action: DJT shares were trading lower by 0.64% to $30.90 premarket at the last check on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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