Former US President Donald Trump's new social media venture disclosed in a regulatory filing on Monday (May 16) it may raise up to US$50 million through convertible notes before it merges with a blank-check acquisition firm.
Truth Media & Technology Group (TMTG) is set to receive US$1.25 billion in funding once it merges with Digital World Acquisition Corp. But the deal, which was inked in October, has been under investigation by the US Securities and Exchange Commission (SEC). The funds are inaccessible to Trump's company until the SEC gives the green light and the transaction closes.
TMTG, which according to the filing posted an operating loss in 2021 of US$4.3 million, had to secure other funding as a result. It raised US$38.2 million as of Mar 31 through the issuance of convertible promissory notes, the filing shows.
The filing reveals that the maximum TMTG can raise though convertible notes is US$50 million.
The rollout of Trump's social media app, Truth Social, has been slow after it was launched earlier this year. Trump only started using the platform frequently this month. Two top executives left less than a year after they joined the company, Reuters previously reported.