General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsQuestion for you smart people!
If Trump put Truth Social on the stock exchange, doesnt that mean he would have to inform shareholders of his financial situation?
You would think he would have to open up his business books to the public? I know I would want to see what I was getting into before I invest money into his business? He says that his business are private businesses and he doesnt trust anyone! Why would he do this, something is not right?
Just asking!
Bernardo de La Paz
(49,001 posts)(smart? me? dunno, but here's an answer)
The company must make full disclosure, but the shareholders (tRump 60%) do not have any such obligation. I think there is some threshold percentage (5? 1?) where existing shareholders have to be listed, but their financials have nothing to do with the company.
There may be some disclosure requirements for corporate officers about holdings and I'm guessing perhaps cross-linkages, but I haven't found anything like that. I expect that they would be far from the full disclosure you seek.
AP report https://apnews.com/article/trump-media-truth-social-spac-vote-841820869418c37ad7eed04f2af42854
One risk, the company said, is that Trump would be entitled to vote in his own interest as a controlling stockholder which may not always be in the interests of all shareholders. Digital World also cited the high rate of failure for new social media platforms, as well as Trump Medias expectation that it would lose money on its operations for the foreseeable future.
Trump Media lost $49 million in the first nine months of last year, when it brought in just $3.4 million in revenue and had to pay $37.7 million in interest expenses.
DWAs shareholders also voted Friday to approve a slate of seven people, including the former presidents son, Donald Trump Jr., to hold seats on Trump Medias board. Among the others are former Republican Rep. Devin Nunes, who would also be the companys CEO; Robert Lighthizer, who served as Trumps U.S. trade representative; Linda McMahon, who ran the Small Business Administration under Trump; and, Kashyap Kash Patel, a White House national security aide during the Trump administration.
Bernardo de La Paz
(49,001 posts)FOR IMMEDIATE RELEASE
2023-135
Washington D.C., July 20, 2023
The Securities and Exchange Commission today announced settled fraud charges against Digital World Acquisition Corporation (DWAC), a special purpose acquisition company (SPAC), for making material misrepresentations in forms filed with the SEC as part of DWACs initial public offering and proposed merger with Trump Media & Technology Group Corp. (TMTG). The Commission finds that DWAC misled investors and the SEC by failing to disclose that it had formulated a plan to acquire and was pursuing the acquisition of TMTG prior to DWACs IPO.
[...]
https://www.sec.gov/news/press-release/2023-121
Defendants made tens of millions of dollars from illegally trading on nonpublic knowledge of DWACs plan to acquire Trump Media & Technology Group Corp.
FOR IMMEDIATE RELEASE
2023-121
Washington D.C., June 29, 2023
The Securities and Exchange Commission today filed insider trading charges against Bruce Garelick, a former board member of Digital World Acquisition Corporation (DWAC), a special purpose acquisition company (SPAC); Michael Shvartsman and his firm Rocket One Capital LLC; and Gerald Shvartsman for trading in advance of DWACs October 2021 announcement that it had reached an agreement to acquire Trump Media & Technology Group Corp. (TMTG).[...]
Bernardo de La Paz
(49,001 posts)Many factors could cause actual future events to differ materially from the forward-looking statements in this 8-K, including but not limited to:
(i) the risk that the Business Combination may not be completed in a timely manner, by Digital Worlds Business Combination deadline or at all, which may adversely affect the price of Digital Worlds securities,
(ii) the failure to satisfy the conditions to the consummation of the Business Combination,
(iii) the risk that certain ongoing or new disputes and disagreements with the sponsor or related to certain TMTG stockholders may be not resolved and delay or ultimately prevent the consummation of the Business Combination,
(iv) the lack of a third-party fairness opinion in determining whether or not to pursue the proposed Business Combination,
(v) the occurrence of any event, change or other circumstance that could give rise to the termination of the Merger Agreement,
(vi) the failure to achieve the minimum amount of cash,
(vii) redemptions exceeding a maximum threshold or the failure to meet The Nasdaq Stock Markets initial listing standards in connection with the consummation of the contemplated transactions,
(viii) the effect of the announcement or pendency of the Business Combination on TMTGs business relationships, operating results, and business generally,
(ix) risks that the Business Combination disrupts current plans and operations of Digital World,
(x) the outcome of any legal proceedings that may be instituted against TMTG or against Digital World related to the Merger Agreement or the Business Combination,
(xi) the risk of any investigations by the SEC or other regulatory authority relating to any future financing, the Merger Agreement or the Business Combination and the impact they may have on consummating the transactions,
(xii) Truth Social, TMTGs initial product, and its ability to generate users and advertisers,
(xiii) changes in domestic and global general economic conditions,
(xiv) the risk that TMTG may not be able to execute its growth strategies,
(xv) risks related to the future pandemics and response and geopolitical developments,
(xvi) risk that TMTG may not be able to develop and maintain effective internal controls,
(xvii) costs related to the Business Combination and the failure to realize anticipated benefits of the Business Combination or to realize estimated pro forma results and underlying assumptions, including with respect to estimated stockholder redemptions,
(xviii) Digital Worlds ability to timely comply with Nasdaqs rules and complete the Business Combination,
(xix) risks that Digital World or TMTG may elect not to proceed with the Business Combination, and
(xx) those factors discussed in Digital Worlds filings with the SEC, including in the Registration Statement. The foregoing list of factors is not exhaustive.
You should carefully consider the foregoing factors and the other risks and uncertainties that are described in the Risk Factors section of the Registration Statement, the Proxy Statement and any related supplements, and in Digital Worlds Annual Report on Form 10-K, as amended, for the year ended December 31, 2022, as filed with the SEC on October 30, 2023 and January 9, 2024 and in other reports Digital World files with the SEC. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to Digital World (or to third parties making the forward-looking statements).
[...]
About TMTG
The mission of TMTG is to end Big Techs assault on free speech by opening up the Internet and giving people their voices back. TMTG operates Truth Social, a social media platform established as a safe harbor for free expression amid increasingly harsh censorship by Big Tech corporations.
[...]
gab13by13
(21,337 posts)Trump is advertising that he can be bought, who wouldn't want to own a possible president of the United States?