February 25, 2024

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Trump-linked SPAC adjourned its three-hour meeting to continue voting on delaying the merger

Trump-linked SPAC adjourned its three-hour meeting to continue voting on delaying the merger

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

Chris Delmas | AFP | Getty Images

Digital World Acquisition Company. , SPAC aims to go public with former President Donald Trump’s media company, postponing its shareholder meeting for another three hours to allow a vote on delaying the merger to continue.

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

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

DWAC shares were up 6% in afternoon trading.

Digital World previously warned that a vote failure could lead to the liquidation of SPAC. More recently, DWAC CEO Patrick Orlando said he plans to start a “consolidated” expansion by injecting $2.8 million from his company and DWAC sponsor ARC Global Investments II.

The DWAC was due to announce the results of the vote on Tuesday, but Orlando postponed its special meeting just two minutes later to provide more time to vote. earlier in the day, Reuters had reported that the DWAC had failed to garner the votes needed for the extension, citing sources familiar with the matter.

DWAC needs 65% of shareholders to support an 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 retail investors. Orlando was mobilizing these investors to vote on the Truth Social.

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Trump Media He denied reports of financial turmoil which claimed the company owed more than $1 million to a contractor. The former president indicated that the company may not need a cash injection from the DWAC deal.

“Anyway, I don’t need funding, I’m really rich!” private company anyone??? Trump wrote in a post on the Truth Social on Saturday.

This is urgent news. Check again for updates.