Donald Trump desperately needs money. In one trial, he is ordered to post $454 million in bail, and further legal proceedings and his presidential campaign are likely to cost even more huge sums of money. The IPO of his social network Truth Social comes at just the right time: it was made possible by a trick and could make him billions.
To go public, the company Trump Media & Technology Group (TMTG) founded by the ex-president must merge with its partner company Digital World Acquisition Corp (DWAC). TMTG was founded to create Truth Social, and Trump himself is the majority shareholder.
Partner company as shell
According to estimates, the IPO could earn him more than three billion dollars. This requires the merger with DWAC, which was approved by shareholders on Friday. The partner company is a so-called Special Purpose Acquisition Company (Spac), in a sense an empty shell that is already traded on the stock exchange.
By merging with such a company, Trump’s TMTG could go public on Wall Street, bypassing numerous requirements. The use of such stock market instruments is quite common in the US.
The deadline is almost over
With the windfall that awaits him now, Trump could raise the amount of more than 454 million dollars (approximately 417 million euros), which he must deposit as security by next Monday as part of his fraud trial in New York. The American presidential candidate can only appeal if he can hand over the money or provide security. Otherwise, New York State could seize his property – especially valuable real estate.
The New York Attorney General’s office has already taken a first step in this direction. She filed a lawsuit against Trump in Westchester County, north of New York City. This marks a first step towards being able to seize a golf course and properties the 77-year-old owns there. Trump recently begged his fans about this.
Trump: “I have 500 million”
His lawyers recently said he would not be able to pay the staggeringly high bail amount. It remains to be seen whether Truth Social’s IPO will get it out of trouble in time. The former US president contradicted his own lawyers in his online service. He claimed Friday that he had “nearly $500 million in cash.” Trump wrote that he wanted to use the money for his current presidential campaign.
Whether the notoriously opinionated Republican is telling the truth remains to be seen. In any case, he was ordered to pay almost half a billion dollars because the court found it proven that he had misrepresented his assets to obtain cheap loans.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
