Trump’s Truth Social SPAC Plummets After Shareholders Reject Extension

0
211

Update (1205ET): Digital World Acquisition Corp (DWAC) announced on Tuesday that it would delay a shareholder vote over the company’s future by 48 hours to September 8th in the hopes of gathering the minimum 65% of shareholders needed with a “yes” vote to proceed with the acquisition.


The announcement sent the stock all over the place:

*  *  *

Shares in the Truth Social’s special purpose acquisition vehicle (SPAC) opened down over 16% on Tuesday following a Rueters report that the company, which was set to merge with Trump Media & Technology, failed to achieve enough shareholder support for a year’s extension to complete the deal.

The stock fell down more than 22% premarket on Tuesday to $19.45, which comes on the heels of a YTD decline of more than 50%.

The outcome of the vote is set for Tuesday at a meeting of DWAC holders – most of whom are individual investors. According to CEO Patrick Orlando, it has been a struggle to get them to vote through their brokers.

DWAC needs at least 65% of shareholders to support the extension, which was nowhere near the case on Monday evening.

The merger has been delayed by a SEC investigation into the deal after announcing the merger plan last October. The company has warned previously that if the deal isn’t extended, the SPAC may be forced to liquidate.

According to Reuters, one option under consideration is to postpone the vote deadline as it tries to rally support for an extension. If they are unable to do so, the company has the right for a six-month extension without holder approval – though it’s unclear whether the company will attempt to do so.

Another issue for Digital World (DWAC) is that a $1 billion PIPE commitment group of investors is set to expire on Sept. 20 unless the transaction with Trump Media & Technology Group is completed. Investment banks for DWAC have been contacting PIPE investors in the last few weeks to see if they would consider extending the PIPE, Reuters added. –Seeking Alpha

In August DWAC filed to delay the release of its Q2 results.

Meanwhile, Google continues to bar the app from its Pay Store platform over ‘insufficient content moderation.’

Turns out it’s not so easy to just ‘build your own Twitter.’

When news of the SPAC merger first broke, shares in DWAC gained more than 350%, and have since dropped 74% from 2022 highs in March.

 

In Case You Missed It:

FBI Ignored ‘Eyewitness Testimony’ Of Joe Biden’s Involvement In Son’s China Deal: Senator

Dirtbag Andrew Weissmann SUFFERS MELTDOWN After Florida Judge Respects Rule of Law and Blocks Lawless DOJ in Their Assault on Trump



For breaking news from one of the most over the target and censored names in the world join our 100% Free newsletter at Newsletter, The best way to get the information you want.

Also follow us at Gab

Follow us on Gab.com , Like, comment, and subscribe.

Telegram, Join our Telegram chat

Shop Patriot and Detox the Deep State by shopping with our sponsors.

Protect your future with ITM Trading, If you haven’t prepared for the collapse, you're out of time... BUY GOLD and SILVER NOW!

RedPillLiving.com, Home of Sleepy Joe – the world’s most powerful all natural sleep formula and The Great Awakening Gourmet Coffee for Patriots.

TheGreatAwakeningCoffee.com, Gourmet Coffee for Patriots!

The Serapeum.com, The Hidden History of Man & The Mystery Babylon Religion of The Deep State.



This post was originally published on this site