Temple
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Posts : 7317
Join date : 2014-07-29
 | | Subject: Investors In Trump’s New Company Want To Cash Out Tue Dec 07, 2021 5:44 pm | |
| 12-2021
Investors in Trump’s new company want to
cash out as soon as possible.
There are red flags that Trump's new media company may be a mirage that investors may pump and dump, according to a new report.
In his Popular Information newsletter, Judd Legum notes a number of red flags.
"Initially, TMTG suggested that Truth Social was based on "proprietary" technology. It was later forced to admit that the code was taken from Mastodon, an open-sourced decentralized social network that anyone can use," he reported.
"TMTG was also subject to criticism for failing to announce 'anyone involved in building its supposed technology.'"
The company's purported launch date also came
and went in November.
Legum noted the compromising situation he could
be in if the money were coming from foreign power,
like the Kingdom of Saudi Arabia.
"But who is investing $1 billion in Trump's virtually non-existent company? TMTG does not say.
They identify the source of the cash as "a diverse group of institutional investors."
The identity of the investors is critical in light of Trump's future political ambitions. He may run for president again in 2024. What if, for example, the investors include the Saudi sovereign wealth fund?" he wondered.
Legum gave his analysis of the Private Investment
in Public Entity (PIPE) fundraising effort currently underway.
"The structure of the PIPE deal, however, suggests that these investors are less interested in influencing a future president than fleecing retail traders for a quick buck," he wrote.
"In other words, there seems to be a real push by these investors to flip these stocks immediately.
The investors, whoever they are, seem to be keenly aware that time is not on their side.
They want to be able to cash out before anyone
gets too much information about how the company actually performs."
If it is a grift, it's Trump's base that will be stuck
with the bill.
"It's a deal that makes Trump money and the investors money. The people holding the bag will be retail investors paying premium prices for a mirage
of a company because they like Trump," he explained.
Full report.
https://popular.info/p/trumps-new-media-company-is-a-16 |
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Temple
Regular Member
Posts : 7317
Join date : 2014-07-29
| | Subject: Re: Investors In Trump’s New Company Want To Cash Out Tue Dec 07, 2021 5:55 pm | |
| 12-6-2021
Feds 'investigating' financing of Trump’s new media company.
Efforts by former President Donald Trump to start
a new media company are drawing scrutiny from federal investigators, according to New York Times business investigations correspondent David Enrich.
"Donald Trump’s new social media company and its special purpose acquisition company partner say the partner has agreements for $1 billion in capital from institutional investors.
The former president launched his new company, Trump Media & Technology Group (TMTG) in October. He unveiled plans for a new messaging app called "Truth Social" to rival Twitter and the other social media platforms that banned him following the Jan. 6 insurrection at the U.S. Capitol," the Associated Press reported Sunday.
"The institutional investors were not identified in a press release issued Saturday by Trump Media and Digital World," the AP noted.
"The money would come from "a diverse group"
of investors after the two companies are combined,
it said."
That financing deal is now under investigation,
Enrich reported Monday.
"Securities regulators have opened investigations into the planned merger of a nascent social media company backed by former President Donald J. Trump with a so-called blank-check company that raised nearly $300 million in an initial public offering in September," he reported.
"The investigations by the Securities and Exchange Commission and the Financial Industry Regulatory Authority were disclosed Monday in a regulatory filing by Digital World Acquisition Corporation, the special purpose acquisition company that intends to merge with Trump Media Technology Group."
Digital World said it was cooperating with the investigation.
"Shares of Digital World were trading 1 percent lower following the announcement, at about $44.33 a share," he noted.
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