Digital World Acquisition and former President Donald Trump’s media company have added an option that allows them to terminate their merger deal between Oct. 31 and Nov. 21, a regulatory filing showed on Monday.
The move comes weeks after Digital World investors voted to give up to a one-year extension to complete the much-delayed deal, Reuters reports.
The blank-check firm amended the merger agreement on Sept. 29, according to the filing, which also disclosed that Digital World can terminate the agreement only in that three-week period in November.
Either of the two companies can decide to terminate the deal if their respective boards no longer believe the merger will benefit shareholders.
If the deal collapses, Digital World would be off the hook for an $18 million penalty levied by the SEC against the SPAC in July for “misleading investors.” Read more.
