Trump’s Truth Social SPAC Moves to UPS Store as Investors Pull $130M

As of Friday, the SPAC DWAC had lost $138.5 million of its $1 billion in private financing and changed its address to a Miami UPS store

A bombshell regulatory filing posted Friday revealed the shaky financial standing of Donald Trump’s Truth Social media company’s public-offering dreams and found a very strange address change.

Digital World Acquisition Corp., the Special Purpose Acquisition Company (or “blank-check company”) intending to take public Truth Social’s parent co., Trump Media and Technology Group, has changed its address to a UPS Store in Miami, according to a Friday regulatory filing, CNBC reports.

The address was switched from a Miami office building to 3109 Grand Avenue #450 in Miami. “A search of the address brings up a UPS Store nestled between and Italian restaurant and a nail salon in the waterfront neighborhood of Coconut Grove,” according to the Financial Times.

Along with the new info about the office change, DWAC’s filing also included the fact that some investors had pulled out about $138.5 million of what was $1 billion in private investments in public equity (PIPE). The contractual obligation for those particular investors to contribute to the former president’s media company after the deal expired ended last Tuesday, allowing them to withdraw their funding.

One of the former private investors told CNBC that they pulled financing because of the “many legal obstacles facing the company.” The investor, who withheld their name, was also unimpressed “by the popularity of Trump Media’s Truth Social app as measured by Donald Trump’s follower counts.” While Trump had 80 million followers on Twitter at one point, he has about 4 million on Truth Social. The Truth Social app is also banned from Google Play for inadequate content moderation.

These disclosures come two weeks after the SPAC DWAC promised to pay almost $2.8 million to extend the time in which it could finish the takeover of Truth Social into December. Funding came from Patrick Orlando, CEO of Arc Global Investments II.

The merger delay also comes as Trump Media and DWAC face legal issues. They are the subject of an investigation of the SEC about whether the two companies violated securities laws in their discussions prior to the merger.

Trump personally is also facing multiple investigations, including civil fraud allegations from New York’s attorney general, as well as criminal investigations concerning to the removal of classified documents from the White House after his presidency ended, as well as his role in the Jan. 6 Capitol riots and attempts to sway the outcome of the 2020 presidential election.

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