This illustration shows Donald Trump’s new social media app, Truth Social, swinging a smartphone in Los Angeles, February 21, 2022.
Chris Delmas | AFP | Getty Images
Digital World Acquisition Corp., which aims to bring former President Donald Trump’s media company to the public, has adjourned its shareholder meeting until October. 10 to allow continued voting on delaying the merger.
The DWAC had already postponed the meeting twice earlier in the day after postponing it on Tuesday. The deadline for the merger is Thursday, and a vote could decide the fate of a $1.3 billion cash injection from the DWAC public offering and a potential stock market listing of Trump Media and Technology Group.
It was not clear what the delay meant for the deal. DWAC CEO Patrick Orlando posted on the Truth Social that “important information will be posted on the Truth website later today.” DWAC shares are down about 3% in light of volume after the market close.
Trump owns the Media Truth Social, which the former president founded after he was banned from Twitter after January 11th. 6, 2021, Capitol riots.
Digital World previously warned that a vote failure could lead to the liquidation of SPAC. More recently, DWAC CEO Patrick Orlando said he plans to start a “consolidated” expansion by injecting $2.8 million from his company and DWAC sponsor ARC Global Investments II.
The DWAC was due to announce the results of the vote on Tuesday, but Orlando postponed its special meeting just two minutes later to make more time for the vote. Earlier that day, Reuters reported that the DWAC failed to get the votes needed for the extension, citing sources familiar with the matter.
DWAC needs 65% of shareholders to support an extension of the merger deadline. While 20% of those shares are owned by Orlando through ARC Global Investments, he says the deal has attracted many retail investors. Orlando was mobilizing these investors to vote on social truth.
The deal has also been the subject of a Securities and Exchange Commission investigation into potential securities violations, stemming from reports that representatives from Trump Media and DWAC discussed the merger prior to the DWAC’s public offering.
Trump Media and Technology Group blamed the Securities and Exchange Commission for delaying the merger, claiming that “meaningful feedback” from the commission was long overdue.
“For the sake of simple fairness, the Securities and Exchange Commission needs to set aside any improper political considerations and bring its review to a swift conclusion,” a statement from Trump Media said.
Trump Media has denied reports of a financial crisis that claimed the company owes more than $1 million to a contractor. The former president indicated that the company may not need a cash injection from the DWAC deal.
“Anyway, I don’t need funding, I’m really rich!” private company anyone??? Trump wrote in a post on the Truth Social on Saturday.