Trump SPAC Digital World Acquisition dropped 10% as a deadline for PIPE financing was set to expire today.
Investors in the SPAC’s $1 billion PIPE financing are reportedly in talks with Digital World CEO Patrick Orlando to try to get better terms that would shift the risk to Trump and his backers — and away from the investors, the Financial Times reported.
Digital World continues trying to drum up shareholder support for a deadline extension on merging with Trump’s social media company. The special meeting for the vote was adjourned and postponed four times earlier this month when it became apparent the SPAC did not have the requisite 65% of voting shares to support a proposed extension until September 2023.
Digital World is expected to try again on Oct. 10 to secure shareholder approval for the extension. However, if the PIPE financing falls apart — and the PIPE is by far the largest cash component of the deal — extending the merger deadline might become moot.
