The shares of Digital World Acquisition Corp (DWAC), the special purpose acquisition company with plans to take former President Donald Trump's social media site Truth Social public, rose slightly in pre-market trading Friday after the company said it would delay a vote to extend the deadline for its merger after
The former President is at a rally.
The company will delay the vote until October 10 because they didn't get enough shareholder approval to extend the merger deadline, according to the CEO.
In order to extend the merger deadline another three months without shareholder approval, Arc Capital deposited money into DWAC's trust account.
After failing to get enough yes votes, the company adjourned the shareholder vote.
The merger agreement is not likely to be completed without a year extension.
There is a sum of over one billion dollars. The DWAC merger will give Truth Social money.
After being banned by several sites following the January 6 insurrection, Trump launched Truth Social, an alternative to liberal media platforms. The DWAC and Trump Media and Technology Group plan to amalgamate. DWAC had set a date of September 8 to finish a merger with Truth Social or give back to investors the money it raised through its initial public offering. One of the main funders of Trump's social media project is DWAC. The blank check company is the subject of several investigations, including a Securities and Exchange Commission probe that was launched after reports emerged company executives may have held talks with TMTG before DWAC's initial public offering. The board of directors of DWAC has been subpoenaed by a federal grand jury in New York in regards to communications with multiple individuals and information about a Miami-based private equity firm.
A company that provides internet hosting services for conservative causes is one of the vendors that Truth Social owes money to.
Trump defended Truth Social in a post on the site last weekend, saying the platform was only getting stronger. The company is a private one. The SEC has "needlessly delayed its review of our proposed merger, causing real and unnecessary financial harm to DWAC investors," according to the complaint.
According toForbes, the truth social SPAC failed to get shareholder support to extend the deal deadline.
There is a looming deadline for the Trump Media Merger.
The merger partner is grappling with another failed vote.
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