SPAC That Intends to Merge With Trump’s Truth Social Delays Shareholder Vote

The particular function acquisition firm that intends to merge with former President Donald J. Trump’s social media firm has once more come up brief in getting shareholders to offer each firms one other yr to finish the deal.

Patrick Orlando, chief govt of Digital World Acquisition, stated Monday that he was extending the deadline for permitting shareholders to vote till Nov. 3. Mr. Orlando didn’t say how shut the SPAC was to getting the mandatory votes from 65 p.c of its shareholders.

That is the third time previously 4 weeks that Digital World has prolonged the deadline for rounding up votes from shareholders. If shareholders don’t approve a yearlong extension earlier than Dec. 8, Digital World could also be pressured to liquidate and return to traders the practically $300 million it raised in its preliminary public providing of inventory.

That might make it tough for the Trump Media & Expertise Group and its social media platform, Fact Social, to fund its operations.

The deal has been held up by investigations by securities regulators and federal prosecutors into probably improper communications between representatives of Digital World and Trump Media earlier than the SPAC’s public providing in September 2021.

Shares of Digital World dropped greater than 7 p.c in buying and selling on Monday.