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'Nail in the coffin' for Trump's Truth Social after nearly $200M investment cancelled - Raw Story

  
Via:  Devangelical  •  7 months ago  •  11 comments

By:   Sarah K. Burris

'Nail in the coffin' for Trump's Truth Social after nearly $200M investment cancelled - Raw Story
Donald Trump's shell company that aimed to take his media company public to the U.S. Stock Exchange is returning donor money, Reuters reported Thursday. It means they intend to "cancel all outstanding private investment in public equity (PIPE) investments."Trump had a SPAC, a Special Purpose Acquisi...

Sponsored by group The Reality Show

The Reality Show

returning investor money without significant legal stalling or a judge ordering it to happen? wtf...


S E E D E D   C O N T E N T


Donald Trump's shell company that aimed to take his media company public to the U.S. Stock Exchange is returning donor money, Reuters reported Thursday . It means they intend to "cancel all outstanding private investment in public equity (PIPE) investments."



Trump had a SPAC, a Special Purpose Acquisition Company, which is a time-limited (2 years) shell company that is publicly traded with the sole purpose of taking a private company public. He named it the Digital World Acquisition Corp (DWAC) and it planned to merge with Truth Social. Now that might be on hold.

The company announced that they're refunding $533 million that they raised from investors. The cash was meant to be an infusion for the deal, but some investors were already backtracking, leading to commitments being cut to $467 million.

"The development is the nail in the coffin of the $1 billion investment that DWAC (DWAC.O) had raised for the merger with Trump Media & Technology Group (TMTG), which runs the Truth Social platform," said Reuters. "It raises further doubts about whether the former U.S. president will go ahead with the deal, now that TMTG no longer stands to receive $1 billion if and when it closes."



It essentially means, that out of the $1 billion in investment commitments, Trump has lost $533 million.

The Securities and Exchange Commission (SEC) cracked down on the SPACs after there were many details throughout 2020 and 2021 that concerned investors that they were getting a "raw deal," a July report described .

The companies are spinning it as a positive for them.

Devin Nunes, the Trump Media CEO and former Republican member of the House, swears abandoning the commitments is an “important step…in the 'best interest' of shareholders that wanted to complete the merger 'as soon as possible.'"

“Despite how others may seek to characterize the PIPE commitment cancellations, we want our shareholders to understand that these cancellations are a positive development in our ability to consummate the business combination,” Digital World Acquisition Corp. CEO Eric Swider said in a statement.

Forbes reported that they also said on Thursday "its unaudited quarterly financial statements from last year 'should also no longer be relied upon' because of a 'material weakness' in internal accounting practices, following a similar announcement in May about its audited 2022 quarterly reports."


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devangelical
Professor Principal
1  seeder  devangelical    7 months ago

what? too soon for another federal indictment?

 
 
 
Trout Giggles
Professor Principal
1.1  Trout Giggles  replied to  devangelical @1    7 months ago

Is it Friday, October 13th?

Yes?

Then, no

 
 
 
Tessylo
Professor Principal
1.2  Tessylo  replied to  devangelical @1    7 months ago

He lost $533 million

jrSmiley_86_smiley_image.gif

 
 
 
cjcold
Professor Quiet
1.2.1  cjcold  replied to  Tessylo @1.2    7 months ago

He's about to lose much more than just money.

 
 
 
Gsquared
Professor Principal
2  Gsquared    7 months ago

Trump never met a business he didn't run into the ground.  What a loser.

 
 
 
TᵢG
Professor Principal
2.1  TᵢG  replied to  Gsquared @2    7 months ago

He also did a fine job of fucking up the GOP.

 
 
 
Gsquared
Professor Principal
2.1.1  Gsquared  replied to  TᵢG @2.1    7 months ago

The GOP was pretty seriously fucked up well-before Trump (Gingrich, the Tea Party, etc.), but Trump did succeed in pushing it completely over the edge.

 
 
 
Kavika
Professor Principal
3  Kavika     7 months ago

This follows his casinos, Trump Air, Trump Steaks, and Trump University (one of my favorite cons of his)

 
 
 
cjcold
Professor Quiet
3.1  cjcold  replied to  Kavika @3    7 months ago

How can Trump's supporters not know what a huge loser he is?

 
 
 
devangelical
Professor Principal
3.1.1  seeder  devangelical  replied to  cjcold @3.1    7 months ago

simple, they compare their own character and values to his ...

 
 
 
devangelical
Professor Principal
3.1.2  seeder  devangelical  replied to  devangelical @3.1.1    7 months ago

birds of a feather...

 
 

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