Topline
Donald Trump Jr. and Eric Trump were named members of an advisory board to a new special-purpose acquisition company seeking to merge with businesses advancing “U.S. industrial capacity”—lining up with President Donald Trump’s stated goal of bringing manufacturing jobs back to the United States—but the family has a mixed record using SPACs in the past.
Eric Trump and Donald Trump Jr. were named members of New America Acquisition Corp I’s advisory board.
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Key Facts
The SPAC, called New America Acquisition I Corp., will target companies that are “businesses with a focus on American values and priorities,” the company said in a press release.
The SPAC will seek to merge with a company that plays “a meaningful role in revitalizing domestic manufacturing,” New America said in an SEC filing.
The company plans to raise $300 million in stock by selling shares at $10.
In SEC filings, the company said it would “seek to acquire one or more businesses with an aggregate enterprise value of $700 million or greater.”
Don Jr. received 2 million founder shares in the company, according to the filings, while Eric received 3 million.
How Have The Trump Family Used Spacs In The Past?
On March 26, 2024, then-candidate Donald Trump used an SPAC to take Trump Media and Technology Group public, and an initial buying frenzy drove up the stock price for the Truth Social parent company. Trump’s stake in the company elevated his net worth from $2.3 billion to an estimated $6.4 billion over the course of one day, but TMTG quickly plummeted and has never again approached its record. Forbes estimated Trump’s stake in TMTG was worth about $2.6 billion in March, when the stock was trading at $22 per share. The stock was trading at $17.11 per share on Monday morning.
Have The Trump Children Backed Any Spacs?
In July, a SPAC backed by Donald Trump Jr. took public the company Grab-a-Gun, an online retailer that markets itself as the “Amazon of Guns,” and offers online deals on firearms, ammunition, magazines, various gun parts, and tactical gear. The deal was backed by 1789 Capital, a venture capital firm that invests in the so-called “anti-woke economy.” Trump Jr. serves as a partner at 1789 Capital and was given 300,000 shares in the company, according to SEC filings. But the IPO ended in disaster, with the stock price tanking over 20% after opening on the New York Stock Exchange. On Monday, the company authorized a stock buyback program to repurchase $20 million in shares. “With over $120 million in cash, no debt, and positive earnings, we are in a position to act decisively when the market presents a dislocation,” CEO Mark Nemati said in a statement published on Monday.
Tangent
Two investment firms will act as co-book-running managers for the SPAC—D. Boral Capital and Dominari Holdings. Kyle Wool, the president of Dominari Holdings, will serve alongside the Trump Children as an advisor for the new SPAC. Earlier this year, both Don Jr. and Eric were named to the advisory board for Dominari—although it is unclear whether this board existed before the announcement. Dominari also supported the IPO with $40 million for Unusual Machines, the drone manufacturer who appointed Don Jr. to their advisory board last November.
