 "Trump sons' employer hoped to gain from Fed grants; later reverses stance")
The New America Acquisition I Corp, which recently hired US President Donald Trump’s two oldest sons, Eric Trump and Donald Trump Jr, has now revised a public document in which the company stated that it hopes to benefit from grants and other incentives from the federal government, which their father leads.
According to an Associated Press report, the line was removed from the public document after the media house inquired about the conflict of interest with the Trump family business.
Firm removes reference to Trump grants
On August 4, The Wall Street Journal reported that Trump’s two oldest sons will be receiving ‘founder shares’ worth millions of dollars in New America Acquisition I Corp, a special purpose acquisition company (SPAC), aimed at investing in US manufacturers.
A special purpose acquisition company, or SPAC, is a listed shell company that looks to merge with a private company. Through this process, the target company can go public while bypassing some of the regulatory hurdles associated with a traditional IPO.
The company filed paperwork on Monday (local time) for a $300 million initial public offering (IPO) on the New York Stock Exchange. It plans to raise money by selling new stocks on the Exchange at $10 per share. According to the Associated Press report, the previously published filing stated that the target company (with which the New America Acquisition I Corp will merge) should be “well-positioned” to tap federal or state government incentives. However, the reference was taken out of the revised version.
Trump brothers eye $50m paper gain
As part of their involvement as advisors in the New America Acquisition I Corp, Eric and Donald Trump Jr were awarded three million and two million founder shares, respectively. If the company is successful in its plan to raise $300 million, the offering would give both Eric and Donald Trump Jr a combined paper wealth of up to $50 million on the first day of trading, based on the value of their founder shares.
Family’s business ventures under scrutiny
The rapidly expanding business ventures by the Trump family have now come under scrutiny as concerns over potential conflicts of interest arise. Previously, the US President also pledged support to boost the cryptocurrency industry, an area where his family has major financial stakes. Trump's family is a major investor in the crypto project World Liberty Financial, and Eric Trump and Donald Trump Jr have significant holdings in a bitcoin-mining company. Earlier this year, he launched a Trump-branded memecoin, further deepening the family’s involvement in digital assets.