According to a report from Reuters, investors who had planned to be a part of the new business entity behind Donald Trump's Truth Social media platform are bailing and taking their millions in their investment capital elsewhere.
The SPAC that would tie Truth Social to Digital World Acquisition Corp. has been buffeted with nothing but bad news for months after an FEC probe of the deal was announced, the Truth Social app was banned from Google Play and the enrollment on the site has stalled out despite Trump being the main attraction since he is banned on Twitter, Facebook and other social media sites.
According to the new report, an FEC filing reveals that an estimated $139 million in proposed financing has been withdrawn.
Reporting that "The deal between the special purpose acquisition company (SPAC) and Trump Media and Technology Group (TMTG), which owns Truth Social, has been on ice due to civil and criminal probes into the circumstances around the agreement," the Reuters report added, "Digital World said it had received termination notices from private investment in public equity (PIPE) investors ending nearly $139 million in investments out of the $1 billion commitment it had previously announced."
One investor reportedly delivered the biggest blow.
"Sources told Reuters Sabby Management, which had committed $100 million to the PIPE, is one of the investors who have terminated," the report stated before adding that more investors are expected to withdraw in the coming weeks now that a Sept. 20 deadline has passed with little movement.
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