Another scam...
Trump partner in Truth Social delays key vote on merger
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If a new deal deadline isn’t approved at a shareholder meeting on Oct. 10, Digital World can still play for time. It can delay the deadline by three months if sponsors backing its company pay nearly $3 million into a trust account, then delay again for another three months for the same payment. The company has said previously it would chose to delay three months if necessary.
If the deal is not closed by the new deadlines, Digital World must liquidate and Truth Social’s parent, Trump Media & Technology Group, will have to find other sources of cash. It could do that by borrowing, finding private investors, or having Trump himself contribute the money, something he has avoided in many of his business ventures but has hinted he might do.
A merger would release to Trump Media $290 million held by Digital World and another $1 billion that private investors had committed to the combined company. Until then, Trump’s company is on its own, paying staff, leases and other expenses from $36 million raised from sales of promissory notes last year and earlier this year.
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In the proposed merger, Trump is hoping to cash in on a recent investing trend involving risky shell companies called special purchase acquisition companies, or SPACs, that have no product or service to sell and are set up solely to merge with a business with one.
Once wildly popular, stocks of many highflying SPACs have plunged in price and many others have been liquidated without completing mergers. SPACs, also called blank-check companies, are allowed a quick path to go public without many disclosures but only if they have not yet had substantial discussion with a possible merger partner, a possible focus of the Digital World investigations.
“The SEC has needlessly delayed its review of our proposed merger, causing real and unnecessary financial harm” to investors, said Trump Media in a statement. “The SEC needs to set aside any improper political considerations and bring its review to a swift conclusion.”
http://apnews.com/article/technology-social-media-donald-trump-0260ab7adcdcdd711fdc9aef770cdd1e
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