Former US President Donald Trump announced plans on October 20 to launch his own social networking platform called “TRUTH Social”, which is expected to start rolling out a beta version for “those who are not interested”. invited guest” next month.
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The fate of a planned merger between former President Donald Trump’s media company and a shell company aimed at taking it public – and providing it with a source of cash – took a turn for the worse when a deadline important is approaching.
Digital World Acquisition Corp. has a deadline of Thursday to merge with Trump Media and Technology Group, owner of Truth Social. DWAC, a special purpose acquisition company, has spent the past week vying for enough shareholder votes to extend the deadline for the deal. The companies did not complete the merger and federal investigations surrounding the deal and Trump have piled up.
The result of shareholder vote will be announced at noon on Thursday ET.
The DWAC had been scheduled to publicly announce the results in a special meeting on Tuesday, but Chief Executive Officer Patrick Orlando adjourned the meeting for two minutes to allow more time to vote. At the beginning of the day, Reuters reported that the vote failed, citing sources familiar with the matter.
The DWAC has previously warned that failure to approve the extension could result in liquidation, which will be paid around the stock’s cost of $10 per share. DWAC on Wednesday traded around $22; stock at around $97 in March.
Trump Communications and Technology Corporation is also facing obstacles. The social app Truth, created by the former president after he was banned on Twitter following the January 6, 2021 uprising, has been banned from the Google Play store.
The company signaled that it was still working on the deal.
“TMTG will continue to cooperate with all stakeholders involved in the merger plan and expect SEC officers to quickly conclude their review without political interference,” the company said. told CNBC on Tuesday.
But Trump, in a post on Truth Social on Saturday, indicated that the matter is being worked out and that he doesn’t need to DWAC or transfer funds from the deal to keep the foundation going.
“I think Google is doing well (I think?). The SEC is trying to hurt the financing company (SPAC),” the former chairman wrote to his 4 million Truth Social followers. on Saturday. “Who knows? In any case, I don’t need the finances, ‘I’m really rich!’ Who is the private company???”
The failure of the DWAC merger could ignite retail investors who tried to invest in SPAC because of the chairman.
Orlando may retain DWAC’s liquidation, according to a Wednesday SEC filing. Orlando’s company and SPAC’s sponsor, ARC Global Investments II, plans to contribute $2.8 million of its own money to begin a three-month extension.
DWAC, however, may not be out in the woods. The company is facing federal investigations into possible securities violations by DWAC and Trump Media and Technology Corporation. Trump is also facing multiple investigations into the removal of sensitive documents from the White House and his role in the January 6 riots on Capitol Hill.
DWAC also warned in an SEC filing that Trump’s declining popularity could be a risk to the deal..
Representatives from DWAC and Trump Media did not immediately respond to a request for comment Wednesday.
