UPDATE: Digital World Acquisition has postponed its shareholder meeting for the second time today, with plans to reconvene at 5 p.m. to allow voting to continue on delaying a merger with Trump Media & Technology Group. The SPAC needs 65% of outstanding shares to vote in favor of the deadline extension for it to pass. If it fails, Digital World’s CEO said he would initiate a built-in extension — 3 more months in exchange for a $2.8 million cash infusion into the SPAC’s trust. The risk in that maneuver is that money cannot be recovered if the deal with Trump’s company fails to close. It would instead be doled out to non-redeeming shareholders in the event of the SPAC’s liquidation.
EARLIER: Digital World Acquistion this afternoon adjourned its shareholder meeting for three hours until 3 p.m. to continue rallying votes on a proposed one-year deadline extension for merging with Donald Trump’s media company, CNBC reports.
The deadline for the merger is today, and the vote could decide the fate of a $1.3 billion cash infusion from DWAC’s public offering and Trump Media and Technology Group’s potential listing on the stock market.
Digital World previously warned that the vote’s failure could result in the SPAC’s liquidation. More recently, CEO Patrick Orlando said if the shareholder vote fails to pass, he intends to initiate a “built-in” extension with a $2.8 million injection from his company and DWAC sponsor ARC Global Investments II.
DWAC had been scheduled to announce the vote results on Tuesday, but Orlando adjourned the shareholder meeting after just two minutes to provide more time for voting. Orlando in an interview last week noted that a majority of the SPAC’s shareholders are retail investors and it is challenging to get them to vote in sufficient numbers on proxy matters.
This is a developing story and will be updated. Read more.
