A long-awaited merger between a cash-rich acquisition company and former President Donald Trump’s social media platform Truth Social will have another 12 months to be completed after shareholders of Digital World Acquisition Corp voted for an extension, giving Trump’s company another chance at $300 million through the merger, which has faced regulatory setbacks.
A blank check firm extended a deadline to acquire former President Donald Trump's Truth Social by ... [+]
The two companies had faced a September 8 deadline for a merger or an extension, or else Digital World would have been required to return at least $300 million it raised to company shareholders, at roughly $10.24 per share.
Failure to extend the deadline or close on the merger would have also prevented Trump Media & Technology Group from going public, which DWAC, a Nasdaq-listed blank check firm, had agreed to do.
Digital World’s shareholders had previously voted last September to extend the deadline, though the company’s acquisition of Trump Media had been mired in multiple controversies, including a DWAC board member and two other people in the company being arrested and charged with insider trading in June.
The SPAC had also agreed in July to pay $18 million to settle a Securities and Exchange Commission investigation into the merger.
This is a breaking story and will be updated.
Will Trump’s Social Network Go Public? Truth Social’s Parent Faces Looming Deadline This Week. (Forbes)
Ex-Board Member Of Trump’s SPAC Arrested For Insider Trading (Forbes)
Truth Social SPAC Agrees To Pay $18 Million To Settle SEC Investigation Into Merger (Forbes)