Donald Trump and the backers of a blank-cheque company that plan to take his Truth Social media business public are scrambling to renegotiate a $1bn financing package with investors ahead of a crucial deadline for the deal.
Investors who committed to provide funds to the company through a so-called private investment in public equity (Pipe) transaction are in discussions with Patrick Orlando, the chief executive of Digital World Acquisition Corporation, to get better terms that would shift more of the risk associated with the transaction to Trump and his backers, said two people familiar with the talks.
The $1bn deal with investors was scheduled to expire on Tuesday. If they choose to withdraw their support, Truth Social owner Trump Media & Technology Group will receive much less cash even if its planned merger with DWAC, a so-called special purpose acquisition company (Spac), goes through.