Trump SPAC Filing Addresses 'Disruptive Events' Barrons.com BY Dow Jones & Company, Inc.

— 11:21 AM ET 10/28/2021

Bill Alpert

It's uncommon for a prospectus to promise the business has planned for its key man's potential indictment.But Donald Trump is no common man.

In its merger agreement with a special purpose acquisition company, Trump's media venture agreed to structure his role so that operations won't get disrupted if the former president were to run for office or be convicted of a felony, according to securities filings by the SPAC Digital World Acquisition .

The companies agreed that Trump will arrange his ownership and position in Trump Media & Technology to avoid the need for its restructuring in the case of a "Material Disruptive Event." The merger contract defines such events as Trump announcing that he's running for a public office or being "personally convicted of a felony criminal offense."

The former president hasn't been personally charged with any felony. The Manhattan District Attorney has charged the Trump Organization and its financial chief Allen Weisselberg with multiple felonies, which they've denied.

Discussions of felony conviction occur in many prospectuses, but typically in recitals of causes that would allow dismissal of executives from employment.

Barron's queried both Trump Media and Digital World about the merger agreement's precautions but hasn't received a response.

Trump aims to make a social-media alternative to the platforms he's been banned from, such as Twitter (TWTR) and Facebook (FB) . News of the merger vaulted Digital World Acquisition (DWAC) stock from under $10 to above $175 this month. Even at Thursday's price of $72, some shareholders of the SPAC might let their enthusiasm stint their sober appraisal of acquiring Trump's media business.

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