How a dealer in China got a shell company for the Trump deal

It is unknown at this time what he will do after leaving the post. ARC is listed as a “financial advisor” to Digital World Auxiliary Corporation, which signed a deal with Trump’s new media platform in October. The document does not specify what ARC SPAC can get from the government and the business world, as well as “access to quality” pipeline.

Now, new information – a text message, a financial document describing the terms of the shell company, an agreement between ARC and the creators of the digital world and an interview with five sources who know the situation – shows that Sinta and ARC are not the only ones recommended. the world. He also donated money to create the digital world and hired an executive to help bring the company together.

ARC has offered at least $ 2 million to three merchants to set up the SPAC Digital World, which will continue to merge with the Trump Media and Technology Group, and Sinta discusses how the SPAC management team will compensate, according to the financial document. And text messages between Cinta and others concerned.

Someone familiar with the matter said that ARC had finally invested in SPAC, which became a digital world. Reuters ARC initially said it could not confirm the $ 2 million investment. According to official figures, the first investors in the digital world governing body or sponsor have made a total of $ 11.8 million.

The Washington Post and Bloomberg News have previously reported that ARC has a stake in the digital world. It is reported for the first time that the ARC SPAC has provided funds for land acquisition.

Sinta and a spokesperson for ARC and Digital World did not respond to comments.

Reuters could not confirm whether Trump had played a role in creating or shaping the digital world, or how much Trump fans knew about the digital world when his company signed the deal with SPAC. Trump Media and Technology Group spokesman and Trump spokesman declined to comment.

The ARC’s deep role in the agreement is familiar to the financial advisor, who is used to describe the ARC in the digital world control documents. A consultant often advises on how to negotiate the SPAC, but does not invest in the SPAC or participate in the decision-making process. In an interview with Reuters, two capital market lawyers and two finance professors said US law opposes such arrangements and there are no requirements to describe them.

Details about the role of ARC shed new light on the financial institution behind the former president’s lucrative digital world agreement. ARC specializes in transferring overseas funds to the Wall Street Boom via SPACs. Shell companies are listed as fundraising for the acquisition and acquisition of public funds by the SPACs, which allows the targets to set aside their initial public access checks. The gold rush is triggered by the fact that many mom and pop investors are often drawn into risky bets.

The activities of the digital world are under control. The Securities and Exchange Commission and the US Financial Supervisory Authority have asked Digital World about the status of the agreement. The SEC is looking at digital marketing policies and processes, as well as the “identity of some investors” in SPAC and where the money came from. FINRA has requested details of “events around”, including a business review before announcing SPAC’s merger with Trump, Digital World reported.

The SEC and FINRA took no action, and the agencies declined to comment on their claims.

Many questions about the deal have not been answered, including the $ 11.8 million bulk of the funds used to set up the digital world. According to Reuters calculations, that share now stands at $ 705 million.

According to a Reuters financial report, ሲ $ 2 million was to come through a Singapore-based fundraiser.

In addition to the money paid by the ARC in the Singapore Fund, two Israeli investors, blockchain entrepreneurs Stas Oskin and Sebastian Stፑpurak will provide an additional $ 350,000 for the digital signature.

In a text message to Reuters, Stuፑrak confirmed the incident and said he had recalled a different investment figure. He declined to say what his investment was and said “all information must be made public in due course.” He added that he agreed to “support the idea” because he believed in the SPAC management team, but did not participate in the process and did not follow up on the events that followed. He refrained from giving further details.

Oskin did not respond to comments.

As part of the agreement, the document states that the ARC has the power to oppose any agreement pursued by an empty check organization. Reuters could not confirm the identity of the investors in the ARC Singapore Fund, or ARC veto power, that they offered to invest in the digital world.

Securities The digital world does not need to identify the investors behind the sponsor. The digital world sponsor is listed by Delaware as Arsi Global Investments 2. The record does not state that the legal entity is affiliated with the China-based ARC. The papers describe Patrick Orlando, CEO of Digital World, as a “leadership member” of ARC Global Investments II.

Orlando did not respond to requests for comment.

The integration of Digital World with Trump Media is still very important for shareholders. Trump has not yet launched his social media product, and industry analysts have questioned whether he can take platforms such as Facebook.

However, investors have accumulated stocks in the digital world, making it the best performing SPAC ever. Trump’s $ 875 million deal, signed in October, is now worth $ 10.6 billion.

Other US SPACs employed by ARC have lower performance counterparts. The average stock price of the 18 ARC-affiliated SPACs, excluding the digital world, is $ 9.45, below the initial $ 10 public offering price, and the SPAC industry average is $ 9.88.

“Agreement changed”

Santa’s early struggles to gain access to public markets. A former official of the Mexican Ministry of Welfare, Sinta, and several ARC members have been misrepresented by the SEC in 2017 and misrepresented their business dealings with the public. In an unusual move, the SEC barred those companies from taking over at the time.

Cinta and SEC did not respond to a request for comment on a Reuters report last October.

According to a review of the agreement, the investors will soon be able to make themselves known as investment banks in SPACs in China.

By creating SPAC for listing in the United States, the ARC often seeks out executives from US executives, as well as regulatory documents and five people who know how to raise the initial capital required to raise funds from China and other foreign investors. The issue.

A.D. With the launch of the marketing platform in 2020, ARC said, “Wuhan-based SPAC, supported by the Family Office, has been able to create a platform for our customers to enjoy flexibility and benefits. US Financial Markets ”

Spilled last year by SPAC, Yunhong International, Orlando-led and funded by Chinese businessman Yubao Lee, according to regulatory documents citing “inability to conduct business first”.

Lee did not respond to comments.

ARC, a Singapore-based ARC executive involved in the digital world, is introducing Daniel Santos, a blockchain consultant and entrepreneur in the city-state by 2020, according to a source familiar with the matter.

According to a copy of the agreement seen by Reuters, Santos signed an agreement with ARC in September 2020. In the $ 50 million SPAC hypothesis, Santos claims ARC will receive up to $ 97,500 in payments and 20% in addition to its share in SPAC.

Santos is in talks with documentaries, text messages and people with knowledge of the matter to launch SPAC. Jacobson and Fargo needed $ 556,090 to launch SPAC, according to the Registry.

Santos and Fargo have been named board members of the San Diego-based robot Cache, a San Diego-based gaming company, according to the document. In return, the three executives will receive thousands of shares through SPAC, text messaging and financial documentation.

Jacobson and Fargo did not respond to comments.

In July 2021, Santa Santos told Santos that it would not be part of the digital world. “The deal has changed: a new owner, a new board and management, but I’m sure we will get a share,” Santa told Reuters in a text message.

Jacobson announced to Santos that Jacobson’s role had been changed from CEO of Digital World to Board of Directors. Orlando, ARC has replaced Jacobson as CEO of Digital World, a co-founder of another SPAC.

“Someone else is doing it now. I’m still on the board and we can see how everything is shaking,” Jacobson said in a text message.

 

#forex_news

Leave a Comment