'Nail in the coffin' for Trump's Truth Social after nearly $200M investment cancelled - Raw Story
By: Sarah K. Burris
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.
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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what? too soon for another federal indictment?
Is it Friday, October 13th?
Yes?
Then, no
He lost $533 million
He's about to lose much more than just money.
Trump never met a business he didn't run into the ground. What a loser.
He also did a fine job of fucking up the GOP.
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.
This follows his casinos, Trump Air, Trump Steaks, and Trump University (one of my favorite cons of his)
How can Trump's supporters not know what a huge loser he is?
simple, they compare their own character and values to his ...
birds of a feather...