Trump SPAC changes address to UPS Store as investors withdraw over $130 million
The social media app will be developed by Trump Media and Technology Group (TMTG).
Raphael Henrique | Light flare | Getty Images
Digital World Acquisition Corp., the blank check company seeking to take Trump Media and Technology Group public, changed its listed address to a UPS store in Miami.
The move from a Miami office building to a UPS address came with DWAC’s regulatory filing on Friday, revealing some investors withdrew tens of millions of dollars.
The company said it lost $138.5 million of the $1 billion in private equity investor funding, also known as PIPE, to fund Trump Media post-merger. The contractual obligation for these investors to contribute to former President Donald Trump’s media company after the deal expired last Tuesday, allowing them to withdraw their funding.
One of the former private investors told CNBC that he withdrew funding from 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 disappointed by the popularity of Trump Media’s Truth Social app, as measured by the number of Donald Trump followers.
Trump had more than 80 million Twitter followers. On Truth Social, which he founded after being banned from Twitter following the Jan. 6, 2021 Capitol riot, he has 4.1 million. The app is also currently excluded from the Google Play Store.
Representatives for DWAC did not immediately respond to a request for comment.
After failing to garner enough shareholder support to extend the deadline for his deal earlier this month, DWAC CEO Patrick Orlando paid $2.8 million from his company Arc Global Investments II to push back December deadline.
The merger delay comes as Trump Media and DWAC are under investigation by the Securities and Exchange Commission to determine whether alleged discussions between the two companies prior to the merger violated securities laws.
Trump himself is also the subject of multiple investigations, including civil allegations of fraud by the New York Attorney General, as well as criminal investigations regarding the removal of sensitive White House documents, his involvement in the insurgency of the Capitol on January 6, 2021 and attempts to influence the outcome of the 2020 presidential election.
DWAC’s address change was first reported by the Financial Times.
Shares of DWAC were trading around $16 on Monday afternoon, down significantly from its high of $97 in March this year.