The special-purpose acquisition firm Digital World Acquisition Corp (DWAC) has warned potential investors that the man behind its valuable products was involved in a long list of failed businesses before the planned merger between former US President Donald Trump, the company and Trump. Media and Technology Group.
The DWAC, which raised more than $ 1 billion before the deal, detailed investors’ risks in a consolidation document released Monday before the long-delayed consolidation. “Several companies affiliated with President Trump have filed for bankruptcyThe filing warns, citing Trump University, Trump Vodka, Trump Steaks, Trump Shuttle and Trump Mortgage.
Additionally, the company reminded those interested in owning a portion of the real estate that Trump has gone from being a mogul to a politician. “Involved in numerous lawsuits and other matters that could tarnish his reputation“Indeed, the primary reason for the former Twitter-addict Trump to launch the Truth social platform was his removal from every other major social media site after the January 6, 2021 Capital riots.
The SEC can still “Reject this transaction“Filing warns that DWAC did not exist”Obtain an opinion from an independent investment banking firmThe agreement relates to financial health, and “You may not be able to confirm the qualifications or risks of TMTG’s activities“Report of a Public Accounting Firm”Expresses considerable doubt about [DWAC’s] Ability to continue as an ‘ongoing concern’“Filing status, when”Something“Company Officers”There may be conflicts of interest.”
Filing confirms that Trump “Usually forcedYou must post a comment on TRUTH Social at least six hours before repeating the same post on another site. The former president has 2.7 million followers in his network. Although Trump initially planned to make his social media home on Truth Social, new-Twitter owner Elon Musk said he would recover the former reality star’s suspended account once a $ 44 billion deal was struck to acquire the platform. Trump had a significantly larger following on Twitter, boasting about 89 million followers before his account was axed for allegedly inciting violence.
In addition, the former president’s obligation to post the truth socially initially does not seem to cover it. “Political messaging, political fundraising, or vote-out-out effortsIf he wishes, he could potentially use a loophole to get back on Twitter Trump has backed a number of candidates for the 2022 midterm elections, and posts supporting them or even hinting at their campaigns could be considered. “Political message“
Elon Musk has said he will allow Trump to return to Twitter
DWAC plans to merge with the Trump Media and Technology Group from October. However, the deal has been marred by concerns from market analysts that the company was highly valued and tainted by complaints about Truth Social’s glitchy rollout. Supported by Shanghai-based investment firm Arc Group, SPAC initially suggested Trump’s company was worth $ 875 million. “Potential extra earnings “ $ 825 million, with a total value of 1.7 billion.
After the merger, the new-public company will officially change its name to Trump Media and Technology Group Corporation.
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