To The Moon

$Trump Media & Technology(DJT)$ 

$Evergreen Corporation(EVGR)$ 

The original SPAC deal was announced in late 2021 and the Truth Social site was launched in early 2022, yet the business hasn't really evolved much. Even worse, Donald Trump recently started posting on Twitter/X again after doing a Spaces interview live with Twitter/X owner Elon Musk.

Trump posts on X can get 5+ million likes/hearts, while similar posts on Truth Social only get likes/hearts in the thousands. A similar post on Israeli hostages on September 1 got only 14.4K likes on Truth Social, while the X post had 8.3 million likes.

The case for owning Trump Media has only gotten weaker, as the business hasn't taken steps to expand since the going public process started nearly 3 years ago. The company has recently launched a CDN and closed on the transaction for the streaming technology business, leading to the launch of Truth+.

As with Truth Social, Trump Media has launched businesses without any real detail on how the media company is going to turn a TV streaming service into a real business. The company hasn't actually announced any new content partners on either platform to build on former President Trump's audience.

As with the prior quarter, Trump Media didn't provide any usage metrics for Truth Social, including popular user counts. The company hasn't provided any data on how the business is going to grow users, engagement and hence ad revenues

Trump Media only lost $16 million in the quarter, though the company hasn't provided any indication of the spending level required to boost traffic and grow revenues.

Big Lock-up Expiration

Since the finalization of the SPAC deal on March 25, the whole stock story has centered around the lock-up expiration, specifically on the shares owned by Donald Trump. After the 40 million earnout shares, of which 36 million were earned by Trump, were executed on April 26 with the stock trading above required levels, Trump now owns 114.75 million shares with a lock-up expiration officially on September 25.

Due to rules surrounding the stock trading above $12, the lock-up expiration could actually end on September 20. These specific rules designed to bring forward the lock-up expiration a meager 5 days would suggest some level of interest in unloading shares. In other news, let's look at Evergreen (EVGR).

Evergreen SPAC (EVGR) Gets Extension To Feb 2025

Evergreen in an 8-K said shareholders approved pushing the SPAC’s completion deadline for up to nine months. The SPAC’s new deadline is Feb. 11, 2025.

In return for the extra time, the sponsor will deposit the lesser of $80,000 or 3 cents a share into trust for for each one-month extension.

The SPAC said 2,831,713 shares were redeemed going into the vote (about 38%). Evergreen lost about $80.6 million to redemptions on an extension vote last July. That left 7,495,670 shares outstanding going into the latest vote.

Evergreen is broadly focused on the technology sector in the ASEAN region, though it has yet to announce a deal. The SPAC originally raised $100 million in a February 2022 IPO.