TRUTH SOCIAL #PRAVDASOCIAL & Trump Media & Technology Group (TMTG) NASDAQ:DJT - SPAC Digital World Acquisition Corp

[RTH10260]

I confess that I had never heard of a SPAC before this episode, but I'm still confused as to why the deal has not closed.

I've read recently that the SPAC is going to refund a billion dollars to investors. If they had that much money available to refund, why wasn't that enough to close the deal?

Was TFG asking for even more than that?

What was the hold up?

The reason the deal was delayed is cause management of DWAC did speak with management of TMTG and the FEC got wnd of this. SPACs are not alllowed to speak with their potential target of acuisition priot to making the public offering of a takeover or merger. The FEC forbid to go forward with the deal until they ruled on the issue.

[MN-Skeptic]

Uh-oh.

Trump’s Truth Social Has Lost $73M Since Launch, New Filing Shows

Since launching in early 2022, former President Donald Trump‘s Truth Social took in $3.7 million in net sales, and lost $73 million.

The numbers are the first time that any internal financial details on the social platform have been shared publicly, and they suggest that while Trump has made Truth Social his primary social media platform, it has not been translating into meaningful revenue for the tech startup, which is owned by Trump Media & Technology Group (TMTG).

The numbers were revealed in a new financial disclosure from TMTG’s SPAC merger partner Digital World Acquisition Corp. The filing revealed that in 2022, Truth Social lost $50 million on just $1.4 million of net sales, and through the first 6 months of this year it brought in $2.3 million, but lost $23 million.

The financial situation of TMTG is such that “TMTG’s independent registered public accounting firm has indicated that TMTG’s financial condition raises substantial doubt as to its ability to continue as a going concern,” according to the filing.

In a frank assessment of its business, the filing says that “as of June 30, 2023, and December 31, 2022, management has substantial doubt that TMTG will have sufficient funds to meet its liabilities as they fall due, including liabilities related to promissory notes previously issued by TMTG,” and that “TMTG believes that it may be difficult to raise additional funds through traditional financing sources in the absence of material progress toward completing its merger with Digital World.”

The filing indicates that, if TMTG is unable to complete the merger with DWAC, and receive the pot of money on the line, it may not survive.

More at the link above.

[Slim Cognito]

Can't wait to see Pravda Social in the Rot In Hell thread.

[Frater I*I]

Can't wait to see Pravda Social in the Rot In Hell thread.

I would never correct you...so maybe I'll change the tread title...

[bill_g]

Color me shocked that something Trump created has failed so badly. Not.

He'll blame it on others, claim it was never viable, not his idea, he tried to stop it, etc etc.

[Slim Cognito]

Can't wait to see Pravda Social in the Rot In Hell thread.

I would never correct you...so maybe I'll change the tread title...

I was paraphrasing.

[Greatgrey]

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[bob]

The complaint (filed in state court in Florida). Jesse Binnall* is PHV pending.

Claims of defamation and injurious falsehood. Cool $1.5B ask.

Klayman must be dying somewhere (NADT).


* Binnall's office continues to be above the Pita House in Alexandria, Virginia.

[Greatgrey]

The complaint (filed in state court in Florida). Jesse Binnall* is PHV pending.

Claims of defamation and injurious falsehood. Cool $1.5B ask.

Klayman must be dying somewhere (NADT).


* Binnall's office continues to be above the Pita House in Alexandria, Virginia.

Nothing outrageous…

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[p0rtia]

[Luke]

It was reported "Truth Social lost $50 million on just $1.4 million of net sales in 2022 and another $23 million within the first six months of this year, according to the filing" which is what was reported. Here's the S-4 DWAC chart. https://www.msn.com/en-us/news/politics ... r-AA1jSZJz

JPC, am I missing something? https://app.quotemedia.com/data/downloa ... 2023-11-13

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I'm not aware of a single lawsuit Jesse Binnell has won. Every election lawsuit failed.


JPC, is DWAC now a SCREAMING BUY, or should we be keeping our powder dry for the Mike Lindell FrankSocial Offering?

[W. Kevin Vicklund]

Sure looks like they made $50 million in 2022, rather than lost $50 million.

[Greatgrey]

JFC, they even do the fake president crap in their filings

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[Suranis]

What the hell does "Change in fair value of Derivative Liabilities" mean? Because pretty much all the company income and profit comes from that.

Am I correct in suggesting that it is Blowtard adjusting what he thinks his shares are really worth?

I looked up a definition of 'Derivative Liabilities,' and... uh.

https://www.lawinsider.com/dictionary/d ... iabilities

Derivative liabilities means the fair value of derivative instruments in a negative position as of the end of the most recent fiscal year end, as recognized and measured in accordance with U.S. generally accepted accounting principles or other applicable accounting standards. Such value shall be adjusted for the effects of master netting agreements and cash collateral held with the same counterparty on a net basis to the extent such adjustments are reflected on the audited consolidated statement of financial condition of the applicable financial company filed with its primary financial regulatory agency or agencies or, for financial companies not required to file such statements, on the consolidated balance sheet of the financial company prepared in accordance with U.S. generally accepted accounting principles or other applicable accounting standards.

Derivative liabilities means, as of any date, the net liabilities of the Borrower under all Derivatives determined on a xxxx-to-market basis.

Derivative liabilities means those certain earnouts, warrants, and swap agreements required by GAAP to be recognized as “derivative liabilities” in accordance with FASB ASC 815, and as shown on the most recent consolidated financial statements of UHG and its Subsidiaries required to be delivered from time to time in accordance with this Agreement.

Ya, I'll be honest and admit I can only vaguely understand any of that.

But from what I can gather, Truth Social are saying "well we have money held in our holding company and that's getting REALLY valuable and therefore we are adding that increase in potential value to our yearly company income using Mark to Mark Accounting in a way NOT SIMILAR TO ENRON AT ALL!!"

Basically, they could have extra income once they sell this or release this money, so they are adding that value increase as income NOW. For convenience.

So. Ya, I'm putting a "complete and utter shit" rating on this lawsuit. I'm sure people who actually understand this crap are going to rip it apart it in a better way than I can.

[W. Kevin Vicklund]

Interesting that TMTG points out that the claimed $50 million loss is not accurate, but fails to point out that the accurate number is a $50 million profit. It's almost as if they know that it was a mistake one media outlet made that was then repeated uncritically by all the other outlets.

The lawsuit has some legs, but they ain't getting what they're asking for.

[Luke]

At Pravda Social, they're screaming LOAD UP NOW, TO THE MOON and DIAMOND HANDS! Which sound like SELL, GET OUT! in the real world. On Pravda Social, I have an account and mentioned in their DWAC group that I bought in at almost the total high (found the date, it was $180 or some insane price) and said I've been dollar cost averaging since then.

Here's this WINNING chart (still waiting to see how much to load up after hearing JPC's advice):

Look at these beauties. They really has Devin Nunes written all over them (and what a pleasure he's using his formidable talents there instead of stinking up Congress; there are enough NUTZ there. Hope JPC doesn't think we're getting in too late the hit the inevitable peak.

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[pipistrelle]

Meanwhile, it appear the White House and Biden are turning to Threads instead of TruthSocial as the alternative to the laughably named X. Why is that?

I have a big X on my favorites bar. It's my Xfinity account.

[johnpcapitalist]

It was reported "Truth Social lost $50 million on just $1.4 million of net sales in 2022 and another $23 million within the first six months of this year, according to the filing" which is what was reported. Here's the S-4 DWAC chart. https://www.msn.com/en-us/news/politics ... r-AA1jSZJz

JPC, am I missing something? https://app.quotemedia.com/data/downloa ... 2023-11-13

JPC, is DWAC now a SCREAMING BUY, or should we be keeping our powder dry for the Mike Lindell FrankSocial Offering?

The newspapers may have made a mistake in analyzing that. I took only a brief look at the S-4 so I may have missed something, but as others have said, it looks like they're only remaining viable by revaluing some illiquid assets. Nothing I could see adds up to $73 million, but again, I didn't spend any significant time trying to tie numbers together.

However, that's not likely to be material to the overall conclusion: DWAC is a piece of crap, the deal is dead, and a company tied to Trump's brand recognition that only managed to pull in $1.4 million in more than two years of operations is a giant steaming s$#&heap of fail.

I'm waiting for the Mike Lindell offering over DWAC, but I doubt Lindell even remembers that he is trying to get a deal done there, given that his core business is going down the tubes.

[bob]

Substantially true is a defense to defamation.

Even assuming the reporting is $50M off, the defendants likely will argue their gist, i.e., the companies are losing money and the deal won't happen, is substantially true.

Recall Arpaio sued people who erroneously called him a felon: Even though they were wrong (Arpaio, in fact, has never been convicted for a felony), he still lost.

[roadscholar]

In the same sense that it’s legal to call someone a “criminal” even though they’ve never been convicted of a crime?

[bob]

In the same sense that it’s legal to call someone a “criminal” even though they’ve never been convicted of a crime?

That's more of an opinion. "I believe you committed acts that are illegal" is an opinion based on facts; but if there is no factual basis for the opinion, then it could be defamation.

Whereas "your company is $73M underwater and won't survive" is substantially true, even if it "only" $23M underwater and won't survive.

[Dr. Ken]

[raison de arizona]

Niiiiiiiice. Troll level: expert

[RTH10260]

Trump's Truth Social deal is being investigated by 'elite money-laundering team': report

Tom Boggioni
February 3, 2024 9:13AM ET

A federal investigation into the financing behind Donald Trump's foray into social media has grown to involve the FBI, the SEC, a division of the Department of Homeland Security and what is being described as "one of the government’s most elite anti-money-laundering teams" according to a new federal filing.

According to a deep dive by the Washington Post's Drew Harwell, there is no indication that the former president and his Trump Media have been accused of wrongdoing in the case involving the troubled Truth Social thus far, but there are questions over his involvement in "a business arrangement that federal agents now allege was undermined from its inception by financial fraud."

A central focus of the investigation, the Washington Post is reporting, is Patrick Orlando, Digital World’s chief executive, whose special purpose acquisition company (SPAC) stepped in to raise money for the project when banks wouldn't provide financing.

Reviewing government documents, the Post's Harwell wrote, Orlando "had been telling investors privately for months that he’d been talking with Trump about the deal" which is a violation of federal securities law according to the SEC.



https://www.rawstory.com/trump-truth-social-financing/

[RTH10260]

The original article to above

The wild probe into investors of DWAC, Trump Media’s proposed merger ally
Sales of Digital World Acquisition stock triggered a widespread federal probe that involved a confidential informant, a secret airport phone scan and an elite anti-money-laundering squad. Three people were indicted, but the investigation continues.

By Drew Harwell
February 3, 2024 at 7:00 a.m. EST

In October 2021, former president Donald Trump announced that his media company, the owner of the platform Truth Social, had sealed an incredible deal: a merger with a “special-purpose acquisition company” that would deliver to his firm $300 million toward his promise of giving “a voice to all.”

By then, however, the insider trading by investors in the SPAC, Digital World Acquisition, had already begun, according to documents filed recently in the criminal case against three Digital World investors who’ve been charged with securities fraud in federal court in New York.

Digital World’s chief executive, Patrick Orlando, a Miami financier Trump had hosted at his golf clubs, had been telling investors privately for months that he’d been talking with Trump about the deal, the filings assert — a violation of federal securities law, the Securities and Exchange Commission would say later, given his company’s pledge in regulatory filings that its leaders had held no talks with any merger targets.



Those profits caught the attention of federal officials, who launched a sprawling investigation into Digital World’s investors, the details of which raise questions about how Trump, who built his political reputation in part on having mastered “the art of the deal,” ended up committed to a business arrangement that federal agents now allege was undermined from its inception by financial fraud.



much more details in https://www.washingtonpost.com/technolo ... stigation/
guest link https://wapo.st/486ScT0