Dare I hope that there’s enough shenanigans going on with this stock that the SEC is licking their chops for some future lawsuit?
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Maybe Mexico will pay for all these shares?
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Would he really screw over MAGA investors to cover his gargantuan legal debts?
What an odd question. Anyone who has paid attention to Trump’s history as a businessman (ha!) or as POTUS (urgh!) knows that of course he would.
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It’s even more than “of course he would screw over his fans.” It’s quite clear that screwing over the investors for a quick cash infusion was the entirety of the plan from the beginning.
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A cult with an expiry. Trump holds a majority of the shares, but he can’t sell until 6 months after the IPO. So, if the price hasn’t dropped 5 months from now…
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right around election day.
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It is his Standard Operating Procedure.
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Less than one percent bots??
I think you forgot to multiply by 100.
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No, the other way around - it’s just the one guy who’s name is on the front door, screaming into the void (of bots).
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So, underwriting. Gone? There’s always more money in the shady statist governance stand?
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Even if the SEC doesn’t go after them, there are probably a bunch of private class action securities lawyers who are licking their chops waiting for the board to do something stupid.
If, for example, the board allows Trump to sell before the 6 month lockup expires, it’s almost certainly going to result in a lawsuit similar to the recent one that voided Elon Musk’s $56B Tesla pay package.
And even if the board itself doesn’t do anything stupid, there will almost certainly be lawsuits at the first big drop in price claiming that there were inadequate disclosures of risk. They’ve tried to guard against that by disclosing every risk factor imaginable, including:
- The company “expects to incur operating losses for the foreseeable future.” (i.e., it doesn’t have a timeline on when–if ever–it might make money)
- The company’s accounting firm “raises substantial doubt as to [the company’s] ability to continue as a going concern.” (i.e., it may simply go out of business)
- The company’s “success depends in part on the popularity of its brand and the reputation and popularity of its Chairman, President Donald J. Trump.”
- The company has to pay Trump to use his name even if he stops being involved.
Sounds like a SOLID investment, right?
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And they still raised more than $10K per account 
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President? Not Mister?
Surely that’s fraud right there…
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And here we goooooo…
The company said in a filing that its management had “substantial doubt” it would have enough money to pay its debts as they come due, including those from promissory notes the company had previously issued.
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They didn’t “raise” that amount. That’s the implied valuation based on the price people are willing to pay each other for the stock in the secondary market (“secondary” meaning you’re buying it from an existing owner, not from the company itself–like buying second-hand furniture from someone who already owned it rather than from the factory store). The actual cash that has gone into the company is much less (I think something less than $1,000 per user, which is still too much).
They sometimes call him “Former President” in their legal documents, but definitely call him “President” in lots of places.
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Axios’s odd nomenclature states it well:
The big picture: The SPAC merger proceeds make TMTG financially viable for a while, but it’s no longer possible to even pretend that the share price has any relation to the actual business.
- At this point, owning TMTG is basically an in-kind donation to Donald Trump. Both financially and reputationally.
The bottom line: Peak SPAC wasn’t in 2021. It was last week.
haha
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This is a courtesy title, like continuing to call retired judges or generals “Judge” or “General” when you want to be nice to them. Everyone knows they’re no longer actual judges or generals, but even so it’s considered polite to pretend.
Presumably in court the judge calls Trump “Mr. Trump”, and you too would be perfectly correct to address him as “Mr. Trump” if you met him in the street and weren’t wearing a MAGA hat.
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Ah, thanks for the clarification.
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That’s more red flags than a Soviet era military parade in front of the Kremlin.
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