Digital World Acquisition, which plans to merge with former U.S. President Donald Trump’s social media firm, has postponed a vote on a merger deadline extension for the sixth time. Rescheduled for today, support again fell short of the 65% threshold needed to approve an extension until September 2023.
Digital World CEO Patrick Orlando said he is extending a voting deadline until Nov. 22, Reuters reports.
DWAC has failed to secure support for the extension because many in its shareholder base are individual investors, such as fans of Trump, who are not accustomed to voting their shares.
At stake is a $1.3 billion PIPE that Trump Media & Technology Group, which operates Trump’s Truth Social app, stands to receive from DWAC. DWAC inked the deal in October 2021 to take TMTG public.
Both the SPAC and Trump’s social media company are under federal investigation concerning alleged talks among the parties before the SPAC went public. Digital World management has blamed the investigations — and waiting for SEC approval of its registration statement on the merger — as major factors behind the delay in getting the deal done.
While the current transaction deadline is Dec. 8, Digital World’s charter allows it to secure an automatic three-month extension by pumping 10 cents a share into its trust. However, securing extension support from 65% of shares outstanding would give the SPAC leeway until next September and its sponsor wouldn’t have to spend a dime. Read more.
