Trump SPAC Changes Address to UPS Store as Investors Pull Over $130M

The social media app will be developed by Trump Media and Technology Group (TMTG).

Rafael Enrique | Light rocket | Getty Images

Digital World Acquisition Corp., a blob company seeking to take the Trump Media and Technology Group public, has changed its registered address to a UPS store in Miami.

The change from a Miami office building to a UPS address came after DWAC filed a regulatory filing Friday that said some investors pulled tens of millions of dollars.

The company said it lost $138.5 million of the $1 billion it received from private equity investors, also known as PIPE, to fund Trump Media after the merger. A contractual obligation for these investors to contribute to former President Donald Trump’s media company after the deal expires last Tuesday, allowing them to stop funding.

One of the former private investors told CNBC that he withdrew from funding DWAC due to the many legal hurdles the company faced. The investor, who declined to be named due to the sensitive nature of the matter, was also unimpressed by the popularity of Trump Media’s Truth Social app, as measured by the number of Donald Trump’s followers.

Trump had over 80 million Twitter followers. On Truth Social, which he founded after he was banned from Twitter following the January 6, 2021 Capitol uprising, he has 4.1 million. The app is also currently banned from the Google Play Store.

DWAC representatives did not immediately respond to a request for comment.

After DWAC failed to garner enough shareholder support to extend the deal deadline earlier this month, CEO Patrick Orlando committed $2.8 million from his company Arc Global Investments II to push back the deadline to December.

The delay in the merger comes as Trump Media and DWAC are the subject of an investigation by the Securities and Exchange Commission about whether alleged pre-merger discussions between the two companies violate securities laws.

Trump himself is also the subject of numerous investigations, including civil allegations of fraud by the New York Attorney General, as well as criminal investigations related to the seizure of classified documents from the White House, his involvement in the January 6 Capitol uprising, and attempts to influence the outcome. 2020 presidential election

The change in DWAC address was first reported by the Financial Times.

DWAC shares traded around $17 after hours on Monday, well below their $97 peak in March this year.

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