Trump SPAC faces looming deadline to keep deal

Blank check company Digital World Acquisition Corp., which is seeking to merge with Truth Social owner Trump Media & Technology Group, will give shareholders a vote by the end of Tuesday on whether to extend the merger agreement. Give more time to trades. Done. Trump Media and Digital World are facing a Thursday deadline to complete a deal stalled by federal investigations.

Digital World shares fell 16% on Tuesday. Reuters reported The blank check company did not get enough votes to extend the merger agreement. A representative for Digital World did not immediately respond to a request for comment.

If at least 65% of shareholders don’t approve the extension, the SPAC (Special Purpose Acquisition Company) could be forced into liquidation and get back about $300 million it raised a year ago. This would also threaten his $1 billion additional investment raised by Trump Media.

The results of the shareholder vote are likely to be announced on Tuesday, but Digital World may choose to postpone the shareholder meeting to buy more time to sway investors.

Another option: Trade backers can independently exercise an option that allows them to extend the trade for 3 months. Such a move would require sponsors to deposit up to $2.9 million into a trust account. according to the report.
The Trump SPAC is an expert red flagLegal scrutiny includes investigations from both the Department of Justice and the Securities and Exchange Commission.

Digital World said these investigations were hampering its ability to complete the transaction, and warned it would “force liquidation” without an extension.

Trump posts message On the weekend’s Truth Social, he suggested he wasn’t worried about the fate of the deal.

“The SEC is trying to hurt the companies (SPACs) that are doing the fundraising,” Trump wrote. Someone from a private company???”

Meanwhile, Digital World CEO Patrick Orlando has appealed to shareholders to allow the merger to be extended.

“Obviously, this is an important vote for us,” Orlando said last week. Transcripts of interviews posted online“We’ve had some delays. This is a deal that has gotten a lot of attention. It’s slower than expected, but we’re fighting every day and working every day to move the ball forward.”
Truth Social is a Twitter-like social network at the heart of Trump media ventures. Still not available in Google’s Android app A Google spokesperson told CNN last week that the app’s content moderation system is flawed.

Source: www.cnn.com

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