Stock of firearm retailer endorsed by Donald Trump Jr. experiences decline following initial market presence
In a move that marks the latest venture of President Trump's family and allies into conservative political causes, GrabAGun Digital Holdings Inc., an online firearms retailer, successfully completed its merger with Colombier Acquisition Corp. II (NYSE: CLBR) and began trading on the New York Stock Exchange on July 16, 2025, under the ticker symbols **PEW** and **PEWW**.
The transaction raised over **$179 million in gross proceeds**, with approximately **$119 million netted** for working capital, corporate growth, and acquisition initiatives. This funding will help accelerate GrabAGun's expansion plans, supported by its focus on a technology-driven, mobile-friendly platform for firearms and ammunition retail.
Notably, **Donald Trump Jr. joined GrabAGun’s Board of Directors** as part of the merger and participated in ringing the NYSE opening bell on the day of the company’s debut. The SPAC itself is led by **Omeed Malik**, whose Colombier II played a key role in the takeover. Malik is also the president of the investment capital firm 1789 Capital and a Republican Party megadonor.
Despite the initial enthusiasm and near-zero redemptions of Colombier II shares indicating strong shareholder confidence in the merger, GrabAGun’s share price experienced a significant drop. The stock started in the low $20s but fell about **19% on its first trading day**, reflecting investor concerns about the company’s leverage and broader skepticism of the SPAC market. The sharp decline happened despite the high-profile involvement of Donald Trump Jr., suggesting underlying market caution regarding the firm’s financial outlook and competitive landscape.
Trump Jr., who is the sole trustee of the trust where he placed his more than 114 million DJT shares before taking office in January, made statements about the trading debut of GrabAGun on Fox Business, referring to it as a 'vindication' and 'ultimate triumphant return'. The bell ringing ceremony was met with cheers of "USA!" from the trading floor.
This merger combines a digitally focused firearms retailer with a SPAC to leverage technology in the industry but faces headwinds from SPAC market sentiment and financial concerns, reflected in the stock’s immediate post-listing performance. The company's future success will depend on its ability to navigate these challenges and capitalise on its unique position in the market.
- The funding from the merger, totaling over $179 million and netting approximately $119 million, will be utilized by GrabAGun for various purposes, including expanding their technology-driven business, corporate growth, and potential acquisitions.
- Donald Trump Jr., a prominent figure in conservative politics, joined GrabAGun's Board of Directors as part of the merger and participated in the NYSE opening bell ceremony on the company's debut day.
- Despite strong shareholder confidence in the merger and nearly zero redemptions of Colombier II shares, GrabAGun's share price experienced a significant drop of about 19% on its first trading day, indicating investor concerns about the company's leverage and the broader market sentiment towards SPACs.
- The sharp decline in GrabAGun's share price happened despite the high-profile involvement of Donald Trump Jr., signaling underlying market caution regarding the firm's financial outlook and competitive landscape.
- The merger of a digitally focused firearms retailer with a SPAC aims to leverage technology in the industry, but the company's future success will depend on its ability to address the challenges posed by SPAC market sentiment and financial concerns, as well as capitalize on its unique position in the market.
