Digital World Acquisition Corp (Nasdaq: DWAC) seems to have failed to secure the shareholders’ approval on the firm’s proposed 12-month deadline extension to complete a business combination.
However, the SPAC isn’t giving up on the extended timeline it hopes to provide for the pending merger deal with Trump Media & Technology Group (TMTG). After pushing the special stockholders’ meeting to vote on the proposal from September 6 to September 8, the blank check firm is postponing the meeting further to October 10.
This time, the company is asking a six-month extension from its shareholders. In the meantime, it secured a three-month extension through the firm’s sponsor–ARC Global Investments committing additional US$2.9 million to the trust account and extending the deadline until December 8, 2022. The firm said this is the first of the two three-month extensions allowed for the firm without having to secure shareholders’ approval.
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Should the shareholders’ approve the six-month extension on top of the allowed two three-month extensions, the SPAC effectively gets its initial proposal of 12-month timeframe–pushing the deadline until September 8, 2023.
The deal, first announced in October 2021, is facing regulatory hurdles: the SEC is scrutinizing the merger, particularly the SPAC sponsor ARC Capital and the possible dealings between DWAC and TMTG before the merger. FINRA also sent the blank check firm “preliminary fact-find inquiries” related to trading in the company that occurred prior to the transaction with TMTG being announced.
On its part, TMTG–which manages the social networking site Truth Social–refreshed its call for the US Securities and Exchange Commission to wrap the probe up, claiming the agency caused “real and unnecessary financial harm to DWAC investors,” 90% of which are retail shareholders “the SEC is chartered to protect.”
“Despite its standard practice to provide comments within 30 days, the SEC has failed to give meaningful feedback on DWAC’s registration statement for a stunning 115 days and counting. In the interests of simple fairness, the SEC needs to set aside any improper political considerations and bring its review to a swift conclusion,” TMTG said in a statement.
Donald Trump himself posted on Truth Social that the platform is doing so well, he might not need to take it public for additional funds should the SEC prolong the process further.
“SEC trying to hurt company doing financing (SPAC). Who knows? In any event, I don’t need financing, “I’m really rich!” Private company anyone???” Trump said.
DWAC last traded at US$23.10 on the Nasdaq.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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#LockThemUp