Ask not for whom the bell tolls, it tolls for Truth Social — and for three men in Florida who were accused of illegally making more than $22 million by insider trading ahead of the public announcement that an acquisition firm was going to take Truth Social public, according to the Associated Press:
The charges were outlined in an indictment unsealed in Manhattan federal court that did not implicate Trump or his media company, which owns his Truth Social platform, in any way.
Hold that thought. Down below you’re going to see EXACTLY how and why this new development affects Truth Social. The indictment may not implicate Trump or his platform, but it absolutely affects them materially.
According to the indictment pertaining to the media company, the men were invited to invest in the special purpose acquisition company, Digital World Acquisition Corp., and were provided confidential information that a potential target of DWAC and another acquisition company, Benessere Capital Acquisition Corp., was Trump Media & Technology Group. […]
The indictment said that between June 2021 and November 2021, the men purchased securities including warrants of their own and shared the secrets with their friends and employees, who also bought tens of thousands of units of securities ahead of the merger announcement with Trump Media & Technology Group. Typically, a special purpose acquisition company, or SPAC, is formed with the intent to merge with a private company before the private company becomes publicly traded.
In early 2021, representatives of Trump Media, including Trump, began communicating with principles of Benessere about potentially merging to take Trump Media public, the indictment said.
Between March and June 2021, Trump Media and Benessere entered into nonbinding letters of intent to merge, it said.
The letters required confidentiality but did allow Benessere and its agents to share confidential information with investors in the special purpose acquisition companies, the indictment said.
Jay Ritter, a University of Florida expert on stock markets who has followed Trump’s media venture, said the new charges make it unlikely securities regulators will approve a merger with DWAC.
The emphasis on the last sentence is mine. If the DWAC merger doesn’t go through, then Trump has to find other investors. Period. If he could have found other investors before now, he most probably would have, so I for one am not hopeful that some angel billionaire will come and bail out Truth Social. But anything is possible, I suppose.
If you’re new to the saga of Truth Social, it’s been flying on a wing and a prayer with extensions being sought from the SEC, as it limps along, trying to convince everybody it will shortly have its books in order and/or be solvent.
Truth Social has a July 24 deadline. If it does not prove to the SEC that it has redone its financial reports and all is well, it will be delisted from the New York Stock Exchange. That is considered by most people to be a death knell.
But who knows? Maybe there’s a rabbit Trump hasn’t pulled from the hat. We shall certainly watch and see what happens.
Maybe the govt. getting all that classified material back has taken away something new Trump could sell to the Saudis. Maybe what’s already been given and the money that changed hands is it as far as they are concerned. And his begging for help, reminding them of stuff he gave them has been met with “We already paid you Donald. If you don’t have anything new then we have nothing to discuss.” If a conversation like that has taken place wouldn’t you have loved to be in the room to watch him go so pale that the orange makeup plastered on his ugly mug couldn’t hide it?
Well, we’ve seen Elon burn his fortune by taking over Twitter and basically turning *it* into a version of Trump’s self-promotion blather, Truth Social. Why not just go ahead and throw away even more good money after bad?
Ye shall reap what ye have sown. Jesus