El Nino weakening doesn't mean cooler temperatures this summer, forecasters say
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
Donald Trump's social media company will get tens of millions in special bonus shares in a new publicly traded entity if it performs well, handing the former president possibly billions of dollars in paper wealth based on current stock prices, according to a prospectus filed with security regulators Tuesday.
The filing says Trump's social media company that aims to challenge Twitter and Facebook will be able to exercise warrants convertible to as many as 40 million shares of the new publicly traded company over three years. The exact number will depend on how high the stock in the company trades during that time, with the maximum number granted only if it trades at least at $30 a share or higher for a sustained period.
The bonus shares for his company would come on top of nearly 90 million shares worth possibly billions more.
"Trump and his fellow shareholders could walk away with a really big payday," said Jay Ritter, a professor at the University of Florida who specializes in initial public offerings, though he cautioned the stock could plunge. "At some point the company needs to produce profits and given the competitive nature of the media industry, that could be a stretch."
Trump launched his new company, Trump Media & Technology Group, last week as he unveiled plans for a new messaging app called "Truth Social" to rival Twitter and other social media that banned him following the Jan. 6 insurrection at the U.S. Capitol.
TMTG's plan is to become a publicly listed company through a merger with the publicly traded Digital World Acquisition Corp., a special purpose acquisition company, or SPAC, whose sole purpose is to acquire a private company and take it public.
Digital World's stock plunged 30% Tuesday to close at $59.07. It had traded above $100 last week when Trump's social media company announced it would merge with it.
Still, the closing price implies Trump's bonus "earnout" shares, if granted in full, would be worth $2.4 billion, though that valuation is far from certain. Ritter warned that if Trump's bonus shares are issued, they would dilute existing shareholders, weighing on the stock price.
The bonus shares are in addition to roughly 87 million shares that TMTG will also receive, based on Ritter's calculation from the merger announcement last week. At current prices, that stake would be worth another $5.1 billion.
The big drop Tuesday in Digital World's stock is a reminder to investors of the risks of investing in SPACs, companies whose stocks have a record of soaring and plunging.
Even with the prospectus, investors are still largely in the dark about Trump's new company. It gave few details on who exactly will be running the day-to-day operations and no financial figures.
IPO expert Ritter said the Trump company valuation is remarkable given the company has divulged so little and has virtually no assets.
"But it's obviously got a big brand name that is potentially worth billions of dollars," he said.
Whatever Trump's stake in the new company, he wouldn't be able sell his shares right away. A "lock-up" provision outlined in the prospectus says he wouldn't be allowed to sell until at least five months after the merger.
Trump is listed as chairman of TMTG.
The prospectus acknowledges the "controversial nature" of a business being associated with Trump and his family.
And it says it is taking steps in case Trump should run for president again. It said the new company is structuring Trump's "ownership and position" in a way that eliminates the need for disruptive changes should Trump decide to run for public office or be convicted of a felony criminal offense.
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
A 15-year old boy who was critically injured after a stabbing in Nepean on Thursday has died of his injuries, Ottawa's English public school board said Sunday.
Police say it’s fortunate no one was injured or killed in a collision at North Vancouver’s Park and Tilford shopping centre Saturday evening that sent one vehicle careening into a flower shop and another into a set of concrete barriers outside a Winners store.
The Maple Leafs battled back from a 3-1 series deficit against the Boston Bruins with consecutive 2-1 victories - including one that required extra time - in their first-round playoff series to push the club's Original Six rival to the limit before suffering a devastating Game 7 overtime loss.
Amid scientists' warnings that nations need to transition away from fossil fuels to limit climate change, Canadians are still lukewarm on electric vehicles, according to a study conducted by Nanos Research for CTV News.
Three people have died and two have been hospitalized after a speeding car struck a tree and landed on another vehicle in Fredericton Sunday morning.
A Montreal man is warning Tesla drivers about using the Smart Summon feature after his vehicle hit another in a parking lot.
Madonna put on a free concert on Copacabana beach Saturday night, turning Rio de Janeiro's vast stretch of sand into an enormous dance floor teeming with a multitude of her fans.
Thieves killed two Australians and an American on a surfing trip to Mexico in order to steal their truck, particularly because they wanted the tires, authorities said Sunday.
Alberta Ballet's double-bill production of 'Der Wolf' and 'The Rite of Spring' marks not only its final show of the season, but the last production for twin sisters Alexandra and Jennifer Gibson.
A British Columbia mayor has been censured by city council – stripping him of his travel and lobbying budgets and removing him from city committees – for allegedly distributing a book that questions the history of Indigenous residential schools in Canada.
Three men in Quebec from the same family have fathered more than 600 children.
A group of SaskPower workers recently received special recognition at the legislature – for their efforts in repairing one of Saskatchewan's largest power plants after it was knocked offline for months following a serious flood last summer.
A police officer on Montreal's South Shore anonymously donated a kidney that wound up drastically changing the life of a schoolteacher living on dialysis.
Since 1932, Montreal's Henri Henri has been filled to the brim with every possible kind of hat, from newsboy caps to feathered fedoras.
Police in Oak Bay, B.C., had to close a stretch of road Sunday to help an elephant seal named Emerson get safely back into the water.
Out of more than 9,000 entries from over 2,000 breweries in 50 countries, a handful of B.C. brews landed on the podium at the World Beer Cup this week.
Raneem, 10, lives with a neurological condition and liver disease and needs Cholbam, a medication, for a longer and healthier life.