(Reuters) -Donald Trump Jr.-backed GrabAGun’s shares fell nearly 5% in premarket trading on Thursday, extending losses after tumbling 24% on their debut on the New York Stock Exchange following a blank-check merger.
The company is among the many business interests of the Trump family, whose portfolio spans real estate, hospitality, media, and, increasingly, politically aligned ventures tied to gun rights and conservative consumerism.
According to the gun retailer’s prospectus, Trump Jr., the oldest son of President Donald Trump, owns about 300,000 shares in the company, currently worth roughly $4 million.
Trump Jr. also sits on the board of the online retailer of firearms, ammunition and gun accessories.
From Donald Trump’s sprawling portfolio of golf courses and hotels to Trump Media & Technology Group’s volatile public debut – and now Trump Jr.’s stake in GrabAGun – the family’s brand has been used to tap into a loyal base of supporters and investors.
These ventures, often closely tied to the president’s political identity, have drawn scrutiny from regulators and investors.
“What we’re doing with GrabAGun would have been unthinkable four years ago at the height of wokeness in corporate America,” Trump Jr. said in a post on X.
However, the lukewarm reception highlights the risks of backing newly listed companies, even those tied to prominent figures.
Founded in 2010, GrabAGun offers an assortment of sporting firearms, ammunition and accessories. It has said it expects to benefit from a shift to online shopping by younger firearm enthusiasts.
It went public after clinching a merger with Colombier Acquisition Corp. II, a special purpose acquisition company backed by President Trump’s donor, Omeed Malik.
The deal positioned GrabAGun among a growing group of right-leaning companies such as Trump Media, Rumble and Chain Bridge Bancorp that have gone public in recent years.
SPACs allow their shareholders to redeem their shares and get their money back if they do not like the proposed merger target. Colombier said it had seen “near-zero” such redemptions, signaling “clear confidence” in the GrabAGun business.
(Reporting by Manya Saini and Niket Nishant in Bengaluru; Editing by Pooja Desai)
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