Online firearms seller GrabAGun Digital Holdings made its market debut on Wednesday after joining the New York Stock Exchange through a merger with special acquisition company Colombier Acquisition Corp. The deal netted over $119 million, which GrabAGun plans to use for working capital and future growth.
GrabAGun’s shares initially spiked but then plummeted by nearly 24% at closing. The company also sells ammunition and firearm accessories on its website. Special acquisition companies like Colombier can provide startups with quicker access to public trading while avoiding traditional scrutiny.
Donald Trump Jr., the son of US President Donald Trump, was named to GrabAGun’s board as part of a larger trend of corporations naming him to boards after his father’s presidential election. This move appears to have accelerated corporate interest in having Trump Jr. on their boards, with companies like drone maker Unusual Machines and online marketplace PSQ Holdings seeing significant share price increases after his appointments.
GrabAGun’s market debut follows other recent listings from special acquisition companies, which often benefit from the attention and brand recognition associated with high-profile board members. The company’s future growth plans are not yet clear, but investors will be watching closely as it navigates its new role in the public markets.
Source: https://apnews.com/article/grabagun-stock-trading-donald-trump-jr-79f5286dc75bbe5f90e75b8fb994e7fa