The massive influx of cash that Donald Trump was expecting for Truth Social has been delayed… again.
Digital World, the company that is supposed to send more than $1 billion to Truth Social, is pushing back the merger vote.
The company needs 65 percent of shareholders to approve the merger for it to go through.
The new vote for the merger is now slated to take place on October 10.
Worried About the Numbers
Investors are very worried about Trump’s legal problems.
Without Trump, realistically, Truth Social is dead.
There is also the problem with Google, which is finding every reason under the sun to block Truth Social from the Google Play store.
Instead of voting on the merger, Digital World paid another $3 million so the new company would not have to be dissolved for three months.
Digital World is also amid a massive Securities and Exchange Commission investigation for the timing of its IPO launch.
The investigation is centering on whether investors knew about the possible merger with Truth Social before the IPO was launched at $10 per share.
It topped off at around $175 per share but was floating around $24 at the close of business on Friday.
Truth Social will get $1.25 billion in much-needed cash if the merger goes through.
Trump tried to undermine the concerns, saying he could take the company private if necessary.
He stated, “SEC trying to hurt company doing financing [Digital World]. Who knows? In any event, I don’t need financing, I’m really rich! Private company anyone???”
If Trump had to put $1 billion into Truth Social, it would be about a third of his current estimated worth, but he surely does not have that much cash liquid.
Trump can posture all he wants… without this merger, Truth Social is likely to go under.
Source: New York Post