Digital World Acquisition Corp DWAC, the blank-check company set to merge with former President Donald Trump’s social media firm, is reportedly giving itself three more months of life after failing to win a 12-month extension from shareholders to complete the deal.
What Happened: As of Thursday, only 40% of DWAC shareholders had voted to extend the deal by 12 months, reported Reuters, citing people familiar with the matter.
The special purpose acquisition company (SPAC) said the voting deadline has now been extended to Oct. 10.
Also on Thursday, DWAC asked the U.S. Securities and Exchange Commission (SEC) to conclude its review, saying, “The SEC has failed to give meaningful feedback on DWAC’s registration statement for a stunning 115 days and counting.”
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Why It Matters: Digital World shareholders were given two extra days to decide on the fate of the merger this week.
If the deal goes through, TMTG would receive $293 million through the SPAC and another $1 billion from private investment in public equity.
Patrick Orlando, the CEO of Digital World, said this week that since most shareholders are individuals, getting them to vote has been difficult.
Digital World has revealed that the SEC, the Financial Industry Regulatory Authority and federal prosecutors are probing the merger, but there is no clarity on the nature of the investigation, according to Reuters.
Price Action: On Thursday, DWAC shares rose 1.9% higher to $23.80 in the after-hours trading after closing 1.2% higher at $23.35 in the regular session, according to data from Benzinga Pro.
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