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