Digital World Acquisition in a press release continued to encourage shareholders to vote on extending the merger deadline for the SPAC’s deal with Trump Media & Technology Group.
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 then triggered an automatic three-month extension into December after its sponsor, ARC Global Investments II, deposited $2.875 million (10 cents a share) into the SPAC’s trust. Another three-month extension is available beyond the new Dec. 8 deadline.
The SPAC in regulatory filings has said that ongoing federal investigations into it and Donald Trump’s media company would delay the deal. Regulators have been reported to be looking into unusual trading activity in the SPAC’s warrants and whether Digital World had any discussions with Trump Media prior to its IPO. That would be a violation of SEC regulations governing SPACs.
Digital World also noted in the press release that the deal could also be jeopardized if PIPE financing falls through. Investors in the $1 billion PIPE can walk away from the deal Sept. 20.
Trump Media and Technology Group’s potential listing on the stock market also hangs in the balance. Read more.
