Shares in the company that plans to buy Donald Trump's new business on social media entered Monday in a news report that two key employees have left, which has increased losses since last week when it said it would miss the deadline to submit its annual financial statements.
Digital World Acquisition Corp. closed on Monday by 10% following a report that the chief technology officer and chief product officer had left the company, citing two anonymous sources. No official has responded to requests to be contacted by the Associated Press, but anyone close to the company who did not want to be named because he was not authorized to speak confirmed the two had left.
It is not yet clear why the head of technology, Josh Adams, and product manager, Billy Boozer, have decided to leave, but the rise in staff comes at a bad time for the company as it struggles to attract subscribers.
The move follows a letter from the company last week stating that its accountants needed more time to audit the accounts before submitting an annual report.
Many public companies are requesting file extensions, but stories added to investor jitters sparked an unsatisfactory February launch of the Trump’s Truth Social app, which was interrupted by a break and a long waiting list for them to gain access.
As of Monday, about 1.5 million subscribers were waiting to arrive.
Stocks rose above $ 100 last fall after Digital World announced it was planning to buy Trump's company, Trump Media & Technology Group, a developer of the Truth Social app.
Shares in Digital World ended Monday at $ 56.94, down more than a third of last month.
Last week, two of Trump’s older sons began posting on the podium. "I feel like the gang is back together!" Eric Trump wrote. That same day, Little Don wrote, “Who is ready for the truth?”
But the biggest attraction of True Social, the former president, has yet to post anything after writing over a month and a half ago, “Prepare yourself. Your beloved president will see you soon! ”
The Truth Social app topped Apple's free App Store per day was made available to a limited set of subscribers in February. Since then, it has dropped to the charts and is no longer in the top 200.
Another potential problem for Digital World is funding its operations. Trump was able last year to persuade a number of investors to agree to invest $ 1 billion in business once Digital World merged with Trump Media, but that has yet to happen.
Digital World is still waiting for regulators to sign a contract, which is not guaranteed. The company said last year the Securities and Exchange Commission was investigating Digital World following reports that it may have breached security regulations last year.
Digital World is a company called blank check, an empty business founded with the sole purpose of buying a viable business that is allowed to provide stock to raise money without exposing much to the public because it does not have a clear idea of what it will do. buy now. News reports last year said Digital World and Trump's company were in talks about mergers before Digital World stock began trading, which may have broken the rules.
The company said it was compliant with the investigation. Trump dismissed official analysis as "witch hunt".
Despite a decline in Digital World stocks on Monday, the price still costs the company more than $ 2 billion, surprisingly high in a business with no operating history or publicly available financial figures.
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Courtesy Grizler.com
