- The deadline for Digital World’s deal to get the Truth Social from Donald Trump has passed on September 20.
- Investors backtrack on planned commitments to $140 million, SEC filings show.
- Reuters reported that Sabby Management investors pulled out, withdrawing $100 million.
Investors are backing away from commitments to invest in a company that planned to merge with Donald Trump’s Truth Social platform.
Digital World Acquisition told “blank selection” at the Securities and Exchange Commission deposit On Friday, some backers were withdrawing a total of $139 million they were planning to put into the deal. Digital World previously announced $1 billion in funding commitments.
Investors who signed up for the deal about a year ago were able to back out if it wasn’t completed by September 20.
Investors who withdrew in the filings were not disclosed, but Reuters mentioned That it was Sabby Management, which planned to put in $100 million, that pulled out.
Sources told the news agency that more investors may also withdraw their commitments now that the deadline has passed and wait for more favorable terms offered by Digital World.
The company struggled to close the Truth Social merger and previously Blame it on SEC to delay the deal amid criminal and civil investigations.
The Securities and Exchange Commission started Check deal in June about the possibility that Trump Media and Digital World had held discussions before the launch of the special purpose acquisition (Spac) company last year without informing the watchdog.
As a result, Digital World managers Subpoena received In June of a grand jury in the Southern District of New York.
The digital world has I had a hard time In obtaining sufficient approval from the shareholders for the merger, he may have to liquidate and return the investors’ funds if the transaction is not completed. It said earlier this month that it had extended the deadline for completion by three months.
Sabby Management and Trump Media and Technology Group did not immediately respond to Insider’s request for comment.
“Beer aficionado. Gamer. Alcohol fanatic. Evil food trailblazer. Avid bacon maven.”