Trump-bound SPAC delays vote after declining shareholder support

NEW YORK, Oct 10 (Reuters) – The blank check acquisition firm that agreed to merge with former U.S. President Donald Trump’s social media company postponed a shareholder vote on Monday to Nov. 3 after failing to secure enough support to win 12 months. extension.

At least 65% of the shareholders of Digital World Acquisition Corp. (DWAC.O) Agree to the extension. The special purpose acquisition company (SPAC) decided to delay the deadline to seek more votes.

Digital World, which had already repeatedly pushed back the deadline for its shareholders to vote on a 12-month extension last month, narrowed that limit on Monday.

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Trump Media & Technology Group (TMTG) is risking $1 billion in public equity (PIPE) funding from Digital World, which signed a public deal with the social media giant in October 2021.

Digital World said last month it received termination notices from PIPE investors, who pulled out about $139 million in total funding commitments.

The transaction with TMTG is on hold amid civil and criminal investigations into the circumstances surrounding the deal. Digital World has yet to receive approval from the US Securities and Exchange Commission (SEC), which is reviewing its disclosures about the deal.

Digital World is slated to liquidate on December 8, after being able to extend its life by three months in September.

Reuters reported last month that Saratoga Proxy Consulting, the executives behind Digital World, had failed to pay them for work mobilizing shareholders to vote for their proxy solicitors.

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Reporting by Echo Wang in New York, additional reporting by Sway Herbst-Baylis; Editing by Will Dunham

Our Standards: Thomson Reuters Trust Principles.

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