Rumble SPAC CFVI jumping on talk of distribution deal with Trump

The Trump trades have been a fascinating phenomenon to watch play out, and they are far from over. 2022 will bring the launch of Truth Social and more campaign rallies from Trump, which are likely to spur growth for both stocks. While both have been labeled “Trump trades,” only one is rising this morning.

The company that CF Acquisition Corp VI is buying, Rumble, announced an acquisition of its own. All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. CFVI was created to serve both donors and nonprofit organizations of the Virgin Islands that want to ensure the highest quality of life for present and future generations. Its primary goal is to build a collection of permanent funds, which will be used to enhance the educational, physical, social, cultural and environmental well-being of the children, youth, and families of the Virgin Islands. Our programs, operating cost, and much of CFVI’s community outreach are provided each year through generous donations from CFVI Angels.

• Ahead of the Rumble merger, investors want to know if they should buy CFVI stock at or below $10.
• Before getting kicked off, Donald Trump surpassed 80 million followers.
• Truth Social is part of Trump Media & Technology Group, which also plans to go public through the blank check company Digital World Acquisition Corp. (DWAC -6.03%).
• The Motley Fool has no position in any of the stocks mentioned.

Tate has become well known for his opinions on topics surrounding masculinity and comments on gender that many deem to be sexist. As part of the SPAC merger, Rumble is set to receive $400 million in cash. The amount consists of $300 million that how to buy harmony CF Acquisition raised from its investors, and $100 million obtained through PIPE transactions. Rumble plans to invest the money to attract more creators to its platform, to expand its cloud infrastructure, and for potential acquisitions.

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Assuming no redemptions by CFVI stockholders and prior to giving effect to transaction expenses, the transaction will provide approximately $400 million of proceeds at close, including $100 million of proceeds from a PIPE financing and $300 million of cash held in the trust account of CFVI. Additional InformationThis press release relates to a proposed transaction between Rumble and CFVI. In connection with the transaction described herein, CFVI intends to file relevant materials with the SEC, including a registration statement on Form S-4, which will include a document that serves as a joint prospectus and proxy statement, referred to as a proxy statement/prospectus. A proxy statement/prospectus will be sent to all CFVI stockholders. CFVI will also file other documents regarding the proposed transaction with the SEC. Participants in the SolicitationCFVI, Rumble and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from CFVI’s stockholders in connection with the proposed transaction.

• Ryan Milnes has been a director since 2013, and Ethan Fallang has been a director since May 2021.
• It trades at a $462 million market cap, and CF Acquisition is valuing Rumble at a $2.1 billion enterprise value.
• An early stage company, it’s still in the process of turning its surging user base into material amounts of revenue.
• AdvisorsCantor Fitzgerald & Co. is acting as financial and capital markets advisor to CFVI.
• The company has potential, but it will need to show more to be a buy for me.
• Within the first hour of trading, it fell about 0.90% and has made multiple attempts at rallying since.

Hughes Hubbard & Reed LLP and Bennett Jones LLP are acting as legal advisors to CFVI. Once again, we witness the power of a celebrity to move a stock’s price. Rumble shows its determination to go public with a reminder from its board room.

Why Shares of CF Acquisition Corp. VI Are Falling Today

If you’re confident Rumble’s star will continue to rise, you may want to consider it ahead of the merger close. CFVI is a blank check company led by Chairman and Chief Executive Officer Howard W. Lutnick and sponsored by Cantor Fitzgerald. 5 Assumes no redemptions by CFVI’s public stockholders and prior to payment of transaction expenses and stock repurchase.

That Rumble You Heard Was CF Acquisition Corp. VI Soaring 10% in December

CFVI is up by more than 13% within the first two hours of trading, while DWAC has fallen by almost 5%. Despite coming down a little from its spike within the first hour, CFVI is still up by more than 38% for the week. And while DWAC is in the green for the same period, its gains are less than 3%. Although DWAC rose today in premarket trading, as Wall Street’s opening bells sounded, it began to fall and hasn’t stopped since. This deal also provides Rumble with a large amount of cash proceeds.

You’ll want to learn about the proposed board members, while also keeping track of the transition in your account from CFVI stock to RUM stock. Anyone who’s considering holding RUM stock really ought to familiarize themselves with the new board nominees. The rest of the list includes Emmy-nominated producer Nancy Armstrong and asset manager Robert Arsov. However, at least four names are already quite familiar at Rumble. One of them is Paul Cappuccio, who has already been a director since January 2021, according to the press release. Ryan Milnes has been a director since 2013, and Ethan Fallang has been a director since May 2021.

Trump spokeswoman Liz Harrington said earlier this year Trump joined Rumble in addition to his plans to launch his own social media platform. The CF Acquisition SPAC requires the approval of its shareholders to close the Rumble merger, but it’s likely that their vote will pass—a large number of the SPAC shares are in the hands of insiders backing the deal. Rumble does seem to have some real momentum, with 36 million active monthly users. It trades at a $462 million market cap, and CF Acquisition is valuing Rumble at a $2.1 billion enterprise value. So there may indeed be some potential upside, but any big swings linked to Trump will likely come with volatility as well, so invest with caution and keep an eye on the valuation.

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Which stocks are likely to thrive in today’s challenging market? Click the link below and we’ll send you MarketBeat’s list of ten stocks that will drive in any economic environment. The risk of Rumble stock falling back testing software below the redemption price looks minimal, considering its advertising and cloud opportunities. Its huge cash infusion also reduces the risk of Rumble having to dilute its stock to raise more money soon.

How Popular Is Rumble?

Investors are preparing to vote on whether or not to approve CF Acquisition’s merger with the YouTube competitor Rumble. Additionally, the alternative video content platform recently added the controversial content creator and former professional kickboxer Andrew Tate. Founded in 2013, Rumble operates a platform where people can upload videos to share with their fans, like YouTube. Although YouTube is popular, many creators are dissatisfied with it because of its restrictive terms.

The transaction is subject to other customary closing conditions and is expected to close in the second quarter of 2022. DWAC has seen strong interest by investors and traders as a play on Trump and his large following. Other stocks related to the SPAC and Trump media assets have been highly volatile in market trading.

Should You Buy Citizens Financial Group Inc (CFG) Stock Monday?

Last week, shares of CF Acquisition briefly spiked after the company said it will have a distribution partnership with Truth Social, a social media platform linked to Trump. Truth Social is part of Trump Media & Technology Group, which also plans to go public diamond pattern trading through the blank check company Digital World Acquisition Corp. (DWAC -6.03%). Shares of Digital World are up about 450% since announcing the deal with Trump Media. Shares of CF and Digital World appear to be trading with some correlation over the past week.

The transaction is expected to close in the second quarter of 2022. Rumble highlighted in its investor presentation it has growth similar to TikTok. The company is heavily targeting taking on YouTube by going after big contributors and offering a better platform and more monetization efforts. Samuel O’Brient has been covering financial markets and analyzing economic policy for three-plus years. His areas of expertise involve electric vehicle (EV) stocks, green energy and NFTs.