SPAC on Trump delays assembly by three hours to proceed voting on merger delay

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This illustration photo shows Donald Trump’s new social media app, Truth Social, crashing on a smartphone in Los Angeles, February 21, 2022.

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Digital World Acquisition Company., SPAC, which aims to announce former President Donald Trump’s media company, postponed its shareholder meeting by another three hours to allow a vote to continue delaying the merger.

The deadline for the merger is Thursday, and a vote could determine the fate of the $1.3 billion cash receipts from the DWAC public offering and Trump Media and Technology Group’s potential listing on the stock market.

Trump Media owns Truth Social, which was founded by the former president after he was banned from Twitter following the January 6, 2021 Capitol riots.

DWAC shares were up 6% in afternoon trade.

Digital World previously warned that voting failure could result in the liquidation of SPAC. Recently, DWAC CEO Patrick Orlando said he intends to initiate a “built-in” extension with a $2.8 million injection from his company and DWAC sponsor ARC Global Investments II.

The DWAC had been due to announce the results of the vote on Tuesday, but Orlando postponed the special meeting after just two minutes to allow more time for voting. Earlier in the day, Reuters has reported that DWAC failed to collect the required votes for the extension, citing sources familiar with the matter.

DWAC requires 65% of shareholders to support the extension of the merger deadline. While 20% of the stake is held by Orlando through ARC Global Investments, he said the deal has attracted a large number of retail investors. Orlando has gathered those investors to vote on Truth Social.

Trump Media has denied reports of financial disputes who alleged that the company owed contractors more than $1 million. The former president has indicated that the company may not need the cash infusion from the DWAC deal.

“After all, I don’t need financing, ‘I’m really rich!’ Any private companies???” Trump wrote in a Truth Social post on Saturday.

This is the latest news. Check back for updates.

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