Former President Donald Trump's new social media company has missed a deadline for launching an invitation-only beta version of the platform.
Nevertheless, Truth Social is reportedly seeking to raise an additional $1 billion by selling stock to hedge funds at a price several times higher than its original valuation of $10 per share.
"It is not unusual for tech companies to miss their own deadlines for product releases," CNBC reported Wednesday. "But the November launch date that Trump Media & Technology Group set for 'Truth Social' was the first clear test of whether the company could deliver on its promises to investors who bought stock in (Digital World Acquisition Corp.)."
Trump's company, Trump Media & Technology Group, is merging with Digital World Acquisition Corp. to create the Truth Social platform.
READ MORE: Trump's 'TRUTH Social' platform scrutinized over accusations of stolen code
In an announcement in October, Trump Media & Technology Group said: "TRUTH Social is now available for PreOrder in the Apple App store. TRUTH Social plans to begin its Beta Launch for invited guests in November 2021. A nationwide rollout is expected in the first quarter of 2022. Those who are interested in joining TRUTH Social may now visit www.truthsocial.com to sign up for the invite list.”
Meanwhile, the company's stock price had plunged from a high of $175 after the merger was announced, to $44 per share on Wednesday. However, Reuters reported that the company is seeking to raise an additional $1 billion based on the higher stock price.
"Trump Media & Technology Group, which has yet to roll out the social media app it says it is developing, already stands to receive $293 million if its deal to list in New York through a merger with blank-check firm Digital World Acquisition Corp (DWAC.O) is completed," Reuters reported. "The deal valued Trump Media at $875 million, including debt. Trump Media is now seeking to raise up to an additional $1 billion at a valuation of close to $3 billion, to reflect Digital World's share rally after Trump supporters and day traders snapped up the stock, the sources said."
Reuters called it "the clearest indication yet that Trump and the Digital World dealmakers are seeking to capitalize on the market euphoria around their venture, which has so far been fueled by its ambitious goals rather than a business that is up and running."
Trump reportedly has been personally involved in the effort to raise another $1 billion.
"He has been calling some investors to ask them to make a commitment ... of more than $100 million," Reuters reported. "Investors attending the road show were shown a demo from the planned social media app, called TRUTH Social, which looked like a Twitter feed, the sources said."