This stock photo shows Donald Trump’s new social media app Truth Social glistening on a smartphone in Los Angeles, Feb. 21, 2022.
Chris Delmas | AFP | Getty Images
Digital World Acquisition Corp., the SPAC that aims to take former President Donald Trump’s media company public, postponed its shareholder meeting for another three hours to allow voting to proceed on whether to delay the merger.
The deadline for the merger is Thursday, and the vote could decide the fate of a $1[ads1].3 billion cash infusion from DWAC’s public offering and Trump Media and Technology Group’s potential IPO.
Trump Media owns Truth Social, which was founded by the former president after he was banned from Twitter following the Capitol uprising on January 6, 2021.
Shares in DWAC rose 6% in afternoon trading.
Digital World has previously warned that the vote’s failure could lead to the SPAC being liquidated. More recently, DWAC CEO Patrick Orlando said he intends to start a “built-in” expansion with a $2.8 million injection from his company and DWAC sponsor ARC Global Investments II.
The DWAC had been scheduled to announce the voting results on Tuesday, but Orlando adjourned its special meeting after just two minutes to allow more time for voting. Earlier in the day, Reuters had reported that DWAC had failed to secure the votes needed for the extension, citing sources familiar with the matter.
DWAC needs 65% of shareholders to support the extension of the merger deadline. While 20% of those shares are owned by Orlando through ARC Global Investments, he says the deal has attracted many private investors. Orlando has gathered these investors to vote for Truth Social.
Trump Media has denied reports of financial disputes that alleged the company owed over $1 million to a contractor. The former president has indicated that the company may not need the cash infusion from the DWAC deal.
“In any case, I don’t need financing, ‘I’m really rich!’ Private company anyone???” Trump wrote in a Truth Social post Saturday.
This is breaking news. Check back for updates.