Recently developed social media app Truth Social may end up raising $50 million through convertible notes before its parent company Truth Media & Technology Group (TMTG) merges with the Special Purpose Acquisition Company (SPAC) Digital World Acquisition Corp (DWAC).
This was revealed through a regulatory filing made by the venture owned by former United States President Donald Trump. The merger deal is expected to be closed in October since it’s currently under investigation by the U.S. Securities and Exchange Commission (SEC).
TMTG is set to receive $1.25 billion after the merger deal has been closed however the funds are now inaccessible pending the regulatory scrutiny but once SEC gives a go ahead the funds will be released.
According to the filing, TMTG can only raise a maximum of $50 million through convertible notes. For the period ended March 31, the company had already raised $38.2 through issuance of convertible notes.
Truth Social App was launched earlier in the year, the roll out of the app has been relatively lower former President began using the platform less than a month ago.