Is the Truth Social Merger looking for an off ramp? Updated 3/22

I dont think that’s happened yet, though. That’s what the OP is about. The SEC and DOJ halted the merger between DWAC and Trump Media after it learned the SPAC probably violated one of the most basic principles of forming an SPAC — that it can’t be created for the purpose of acquiring a specific company just as a back door way of taking the company public. But it appears that Trump and DWAC worked out this deal before the SPAC was formed. I’m not sure if Trump made any money off this yet unless he was in the IPO of DWAC, which should be criminal if he was.

 

It will be interesting to see what DWAC stock does on Monday ... It went up 4% the day they announced they wanted to stall the acquisition for over a year ... Seems like investors in DWAC would rather not have Trump as the majority shareholder. iIRC, Trump was supposed to end up with 80% of DWAC stock after the merger, which would give him total control of the board. And we know how that went with his Hotel and Casino stock....

 

And… now Truth Social has been kicked off Android devices….
https://www.cnbc.com/2022/08/30/tru...e-play-store-content-moderation-concerns.html

Edit… my bad, looks like it was never on android devices, but this is Google denying their application.

 

Yeah, incitements to violence, the same thing that got Parler axed... seems someone at Truth Social would have thought that through by now being that they are basically imitating Parler's game plan.

 

LOL ... the DWAC CEO wants out of the merger deal so bad that he's saying if the merger goes through, the company will be bankrupted, having to assume all the debt of Trump's money losing company. He's calling a late minute shareholder vote to delay the merger for over a year.

"Digital World Acquisition Corp., the special purpose acquisition company planning to take former President Donald Trump’s media firm public, scheduled a shareholder meeting Tuesday as it seeks to extend the deadline for the merger for as much as a year."
...
"DWAC has warned previously that a “no” result could force DWAC into liquidation. The SPAC does, however, have built-in extensions of up to six months that can be initiated by sponsors adding money to the trust."

https://www.cnbc.com/2022/09/03/tru...te-on-delaying-merger-heres-what-to-know.html

 

Even though the last day to vote is today, DWAC hasn’t gotten anywhere near the votes needed for the extension, and will most likely liquidate the company on Thursday. The number I’ve heard is $10 per share. That means anyone who bought and held at $175 loses about 94% … and everyone who bought since the merger announcement is a loser of at least 50%.

This doesn’t necessarily mean truth social dies, but given the news that they haven’t been paying their bills for months, I think Trump was counting on this cash infusion. Trump was set to get 1.3 Billion in this deal.

https://www.cnbc.com/2022/09/06/dea...o-get-backing-for-spac-extension-reuters.html

 

Stock is down over 20% in the pre market.

 

Voter fraud alert... They adjourned the share holder meeting after 2 minutes and say they will continue to count votes submitted after the deadline. Lol.

 

It seems there is still a very narrow path to save this merger, but it will take the SEC finding that Trump/DWAC didn't break the law (they probably did), the shareholders getting a 65% majority between now and Thursday (seems like a long shot), and/or something like $300 million dollars being added to the Truth Social escrow account by investors (seems crazy) before Thursday, which would trigger an automatic extension.

I personally think DWAC is trying to get the extension, rather than being forced into liquidation on Thursday, because they want to drop Trump and find a new acquisition target.