Digital World Acquisition's stock price fell as much as 7% on Wednesday as the company struggles to close its proposed merger with Truth Social.
Digital World's deal with Truth Social has caused the SPAC to plunge from its record high of $175 per share. Digital World was unable to close the merger with Truth Social before the deadline.
Truth Social believes that the SEC is to blame for the delayed deal.
The SEC has not acted despite DWAC having filed its registration statement more than four months ago. Truth Social said that this obstruction is damaging investors and other people who are following the rules and trying to expand a successful business.
There are obvious conflicts of interest among SEC officials and there are clear indications of political bias. Despite the increasing weaponization of government agencies, Truth Social will continue its expansion plans, supported by the unprecedented levels of user engagement on the platform.
The fact that Digital World has not been able to get enough shareholders to approve the business combination is one of the factors holding up the deal. An initial shareholder vote failed to pass, and the vote has been delayed to October in order to get more votes.
With continued uncertainty that Digital World will be able to receive the necessary amount of votes by mid- October, the sponsor deposited about $3 million to extend the potential deal deadline to December 8.
Digital World may be forced to liquidate if a deal isn't done.
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