The launch of Donald Trump's new social media company "TRUTH Social" has hit another bump in the road as some early key investors are pulling out after discovering he is one of the principals behind it which they were unaware of at the time they put money into the start-up.
As the New York Times reported, "The details of Mr. Trump's latest partnership were vague. The statement he issued was reminiscent of the kind of claims he made about his business dealings in New York as a real estate developer. It was replete with high-dollar amounts and superlatives that could not be verified."
According to a report from the Huff Post's Ed Mazza, one hedge fund manager lashed out when he found out about Trump's involvement.
As Mazza reports, "[Boaz] Weinstein's Saba Capital had been a major investor in Digital World, a special purpose acquisition company (SPAC) formed for the purpose of acquiring another company. As is common in SPAC arrangements, investors put their cash in before the acquisition target was chosen. When Weinstein learned it would be with Trump's firm, he bailed."
"I knew that for Saba the right thing was to sell our entire stake of unrestricted shares, which we have now done. Many investors are grappling with hard questions about how to incorporate their values into their work. For us, this was not a close call," he explained.
Another unnamed investor, who reportedly held a 10 percent stake in the company, was considerably more graphic when talking about being taken in by Trump's latest venture and he "sold everything as soon as he could," reports Mazza.
"The idea that I would help [Trump] build out a fake news business called Truth makes me want to throw up," they said.
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