The social media application will be developed by Trump Media and Technology Group (TMTG).
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Digital World Acquisition GroupSpecial purpose acquisition company plans to merge with Trump Media and Technology Corporation and took it public, is asking for an extension to file its income statements, according to a regulatory filing Tuesday.
In a filing with the Securities and Exchange Commission, the DWAC said it expected to report within the agency’s five-day grace period from the requested filing date. Publicly traded companies are required to report earnings no later than 35 days after a quarter ends.
DWAC said it posted a net loss of about $4.7 million and $6.5 million for the 3-month and 6-month tenors ended June 30, respectively. It indicates the amount is still under review and may differ from the reported figure.
Trump Media owns Truth Social, an ambitious social network to compete with Twitter, which banned the then president in January 2021 for his tweets while hundreds of his supporters stormed the US Capitol. in a failed attempt to block congressional confirmation of Joe Biden’s election. The CEO of Trump Media is former Representative Devin Nunes, one of Trump’s most staunch allies in Congress.
The delayed earnings announcement comes after the DWAC last week also asked shareholders to extend the deadline for its merger with Trump Media by one year from September 8. A shareholder meeting is expected. takes place on September 6.
DWAC did not immediately respond to a request for comment.
Federal prosecutors and the SEC subpoenaed DWAC as part of investigations into a merger that would take Trump’s company public and potentially give it access to billions of dollars in capital. The DWAC had previously warned that investigations could jeopardize the deal.
Trump has not been accused of misconduct in connection with the DWAC investigation. However, he faces numerous legal problemsincluding a federal criminal investigation into the removal of records from the White House, a criminal investigation into interference in Georgia’s presidential election process, and an ongoing federal criminal investigation. about the Capitol riots on January 6, 2021.
The New York Times reported Patrick Orlando, CEO of DWAC, discuss an agreement prior to SPAC’s initial public offering. This may violate securities laws that prevent SPACs from planning mergers before an IPO. SPACs, also known as white check companies, sell shares before looking for a merger partner.
Shares of DWAC were up about 4% Tuesday afternoon, trading around $31 — down significantly from their peak after the deal with Trump was announced in October.
