Digital World Acquisition today announced its shareholder meeting to vote on a merger deadline extension has been postponed until Nov. 3. Shareholders were scheduled to vote on the matter today after multiple delays as the SPAC struggles to meet the 65% voter threshold necessary to approve an extension until September 2023.
Digital World proposes to merge with Trump Media and Technology Group, a company formed by the former president to compete with social media platforms such as Twitter.
The deal has been dogged by delays, reported internal conflict and investigations by the SEC, as well as whiplash fluctuations in the SPAC’s stock price.
Digital World CEO Patrick Orlando in recent interviews has said a majority of the company’s shareholders are retail investors, compounding the challenge of securing enough votes for an extension. Last week he urged Trump to encourage shareholders to support the proposal.
A nearly $1 billion PIPE is at stake, having already been reduced by $138.5 million last month after some investors pulled out when the SPAC did not hit its initial deadline for closing the deal with Trump’s company.
Meanwhile, CNBC reports an executive at Trump Media filed a whistleblower complaint to the SEC and said he believes the company will go bankrupt.
Shares of DWAC fell about 5% on Monday afternoon. Read more.
