Trump’s merger deadline for Truth Social SPAC has been extended by another year
The Special Purpose Acquisition Company (SPAC) plans to take over the former President TrumpThe media company Public now has another year to finalize the deal.
Digital World Acquisition Corp. shareholders (DWAC) on Tuesday voted to give the SPAC up to an additional 12 months to work out the details of its merger with the former president’s Trump Media & Technology Group, which owns social media platform Truth Social.
The extension came three days ahead of Friday’s previous deadline, which required DWAC to merge with Trump Media or liquidate and return the $300 million raised as part of its IPO to current shareholders. The new deadline is September 8, 2024.
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DWAC and Trump Media first announced plans to merge in October 2021, but the deal suffered a series of setbacks. The Fusion is currently subject to investigations by the Securities Exchange Commission (SEC) and the Department of Justice in connection with the Securities Act. In a filing with the SEC last year, the SPAC warned that the investigations could delay the merger.
Truth Social has been former President Trump’s preferred method of communication since its inception, after he was banned from posting on other social media platforms, including Twitter, now known as X, before buying it Tech billionaire Elon Musk last year.
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Fears that Trump could become too involved during his 2024 presidential campaign The Wall Street Journal reported Tuesday that since Trump posted his mug shot on X last month, “some Digital World investors withdrew their money.”
If DWAC’s deal with Trump Media goes through, the former president’s media company would gain access to more than $1 billion in cash from DWAC’s institutional investors, such as hedge funds. According to a services agreement dated February 2, 2021, Trump controls 90% of Trump Media.
Digital World stock traded at $16.77 on Tuesday, up 1.6% on the day, but down from its March 2022 peak of around $97 per share.
FOX Business’ Aislinn Murphy and Reuters contributed to this report.
Original source of the article: Trump’s merger deadline for Truth Social SPAC has been extended by another year
https://finance.yahoo.com/news/trumps-truth-social-spac-merger-214149604.html Trump’s merger deadline for Truth Social SPAC has been extended by another year