Trump Media and Tech Group (Politics Allowed~Non-Moderated) (DJT)

[oystersnbeer]

Digital World’s regulatory filings listed many of the risks its investors face, as well as those of the Truth Social owner once Trump Media also goes public.

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 Media’s 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.

DWAC’s shareholders also voted Friday to approve a slate of seven people, including the former president’s son, Donald Trump Jr., to hold seats on Trump Media’s board. Among the others are former Republican Rep. Devin Nunes, who would also be the company’s CEO; Robert Lighthizer, who served as Trump’s 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.
https://apnews.com/article/trump-media-truth-social-spac-vote-841820869418c37ad7eed04f2af42854

SEC Charges Digital World SPAC for Material Misrepresentations to Investors

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 DWAC’s 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 DWAC’s IPO.
https://www.sec.gov/news/press-release/2023-135

SEC Charges Former DWAC Board Member and Others for Insider Trading in DWAC Securities
Defendants made tens of millions of dollars from illegally trading on nonpublic knowledge of DWAC’s plan to acquire Trump Media & Technology Group Corp.

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 DWAC’s October 2021 announcement that it had reached an agreement to acquire Trump Media & Technology Group Corp.
https://www.sec.gov/news/press-release/2023-121