Digital World Acquisition, the company aiming to merge with Trump Media & Technology Group (TMTG), owned by former President Donald Trump, is set to lose millions of dollars’ worth of investment from institutional investors, according to the firm’s recent filing with the U.S. Securities and Exchange Commission (SEC).
In October last year, Digital World entered into a merger agreement with TMTG, the parent company of social media platform Truth Social. On Dec. 4, 2021, Digital World entered into securities purchase agreements (SPA) with certain institutional investors (PIPE), according to which the investors agreed to buy up to an aggregate of 1 million shares of Digital World at a purchase price of $1,000 per share—a commitment valued at $1 billion. The investment was to be consummated “concurrently with the Business Combination,” the filing said.
