Monday, October 17, 2022

Trump's DWAC stiffs proxy solicitors - Truth Social threatens to sue SEC - Update II

The co-founder of Digital World Acquisition. (DWAC.q) has turned whistleblower. Will Wilkerson, a former Trump Media and Technology Group executive, told the US financial watchdog that the company’s bid to raise more than $1bn relied on “fraudulent misrepresentations … in violation of federal securities laws.” Among other things he alleges Trump pressured executives to hand over lucrative shares to his wife.

Investors are walking away from Digital World Acquisition. (DWAC.q) Backers are pulling a total of $139m they had planned to put into the deal. Digital World had announced funding commitments of $1 billion. The investors who signed up for the deal were able to back out if it was not completed by September 20. SPAC's merger target Truth Social threatened to sue the SEC, alleging political bias delayed its proposed merger with Digital World. The deal has been under grand jury investigation since June.
Executives behind Digital World Acquisition Corporation, a blank cheque company that plans to take Donald Trump’s media business public, have failed to pay their proxy solicitors. Saratoga Proxy Consulting is owed 6 figues for its work helping to rally shareholders. DWAC is claiming poverty. This comes after it was revealed the 'Truth Social' site owes it's internet provider $1.6m.