Former US President Donald Trump will be able to retain ownership of his newly launched social media venture even if he chooses to run another White House or is convicted by prosecutors who are looking into his business dealings.
Trump said last week that TRUTH Social would be created through a new company formed from the merger of Trump Media & Technology Group (TMTG) and blank-check firm Digital World Acquisition Corp.
Trump was referred to as a “company principal” even though the exact size of his stake in the company was not disclosed, according to regulatory filings released late Tuesday.
However, the former president is set to retain his ownership in TMTG even if the company suffers a “materially disruptive event” — the latest filing includes a clause designed to protect his stake.
“In order to maximize business continuity and to minimize, reduce or eliminate any negative impact on the Company from a materially disruptive event, the principal’s ownership of the Company and position in the Company shall be structured in such a manner that the reorganization a material disruptive event that resulted in a change in ownership or status,” according to the filing.
Since Trump was removed from office in the last presidential elections in 2020, he has repeatedly indicated that he may seek a third term in office in 2024.
Trump and his business interests are also the subject of multiple investigations from US officials – in June, Trump’s well-known company and its chief financial officer were indicted, the first charges arising from Trump’s more than two-year investigation by New York prosecutors. and their business dealings, Reuters reported.
In the latest filing, DWAC highlighted the risks associated with Trump’s company.
“The Buyer hereby acknowledges the contentious nature of the Company being attached to the Principal and the family of the Company Principal,” it said.
As part of an earnings clause in the deal, TMTG shareholders will receive an additional 40 million shares based on DWAC’s share price performance, which closed down nearly 30 percent on Tuesday but still well above SPAC’s IPO price of $10. doing business. A part.
Earlier in October, Reuters reported that the merger with TMTG would have given a potential windfall of $420 million for DWAC’s main backer Patrick Orlando, who has been trying to re-establish himself as a serial dealmaker for a decade. Used to be.
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