Digital World Acquisition in a preliminary proxy filed late Friday called a Sept. 6 meeting for shareholders to vote on a proposed deadline extension that would run to Sept. 8, 2023.
The SPAC said it needs more time to finalize the deal with Trump Media & Technology Group (TMTG). The transaction includes approximately $1.25 billion of net proceeds that would be delivered to TMTG at close, assuming no redemptions by the SPAC’s stockholders.
Digital World has acknowledged it is under investigation by both the Department of Justice and the SEC. Securities regulators and a federal grand jury in New York have subpoenaed Trump Media & Technology Group, plus some of its current and former employees. One of the key points in the SEC investigation is whether the SPAC had any merger discusssions with the target before Digital World made its IPO last September. Such discussions would be illegal.
The SPAC in a June 8-K filing warned that the investigations could delay the deal with the ex-president’s company.
Trump Media has been beset by controversy, executive departures, and technical difficulties ever since its existence was unveiled last October. Read more.
