Investors pull almost $140 million from the SPAC merging with Trump's Truth Social
Investors are backing out of $Digital World Acquisition Corp(DWAC.US$'s plan to acquire Donald Trump's Truth Social platform, the blank-check firm said on Friday.
DWAC disclosed in a SEC filing that some backers were pulling a total of $139 million they had planned to put into the deal. Digital World had previously announced funding commitments of $1 billion.
The investors who signed up for the deal about a year ago were able to back out if it was not completed by September 20.
Digital World did not disclose the investors that pulled out, but Reuters reported that Sabby Management, which had committed $100 million to the PIPE, is one of the investors who have terminated.
DWAC disclosed in a SEC filing that some backers were pulling a total of $139 million they had planned to put into the deal. Digital World had previously announced funding commitments of $1 billion.
The investors who signed up for the deal about a year ago were able to back out if it was not completed by September 20.
Digital World did not disclose the investors that pulled out, but Reuters reported that Sabby Management, which had committed $100 million to the PIPE, is one of the investors who have terminated.
One factor holding up the deal not mentioned in Truth Social's statement is the fact that the company has been unable to attract the 65% of shareholders needed to approve the business combination, according to Reuters. Most of the company's shareholders are individual investors and it has been "challenging" getting them to vote through their brokers, Digital World CEO Patrick Orlando said.
In late October last year, apish Redditors as well as other fervent believers, stormed into DWAC stock and sent shares up as much as 1,650% in two trading sessions, making it the most valuable SPAC of all time. At its 2022 peak, DWAC's stock traded at $97. Now, its share price sits around $16 as markets slide, the appetite for SPACs dries up and Trump faces mounting legal peril.
Trump recent defended Truth Social, saying the platform was "only getting stronger," and adding "In any event, I don't need financing, "I'm really rich!" Private company anyone???”
In late October last year, apish Redditors as well as other fervent believers, stormed into DWAC stock and sent shares up as much as 1,650% in two trading sessions, making it the most valuable SPAC of all time. At its 2022 peak, DWAC's stock traded at $97. Now, its share price sits around $16 as markets slide, the appetite for SPACs dries up and Trump faces mounting legal peril.
Trump recent defended Truth Social, saying the platform was "only getting stronger," and adding "In any event, I don't need financing, "I'm really rich!" Private company anyone???”
mooers, any thoughts about Trump and his company? Is DWAC stock a good investment for you? Or you just treat it like a casino?![]()
Source: SEC, Reuters, Business Insider, New York Times, Truth Social
Source: SEC, Reuters, Business Insider, New York Times, Truth Social
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Roy Peck : Means this DWAC share will rise.??
苹果上月亮 : DWAC will rise once His campaign results are out
102577383 : So recommend to enter today?
funny Giraffe_6930 : don't like the 45 are his T .S. would like to see him in jail! .