65% of Digital World’s shareholders must vote in favor of the plan for it to pass.
Trump SPAC Digital World acquisition (NASDAQ:DWAC)
The Trump SPAC Digital World acquisition (NASDAQ:DWAC) postponed a shareholder vote to extend the deadline for concluding a deal with Donald Trump’s social media company to 3 pm on Thursday. Trump SPAC Digital World acquisition (NASDAQ:DWAC). DWAC went up 5.5%.
The remarks were given by DWAC CEO Patrick Orlando at the start of the meeting, which was initially planned at 12 p.m. According to Orlando, DWAC requires extra time to continue counting votes.
The original DWAC holder vote was postponed from Tuesday to Thursday in order to give the SPAC more time to convince retail investors to support the year extension. Tuesday saw an 11% decline in the value of Digital World (DWAC) shares following news from Reuters that DWAC had been unable to secure consent for a longer deadline to finish its contract with Trump’s social media company.
The sponsor of DWAC said late on Tuesday that if a vote on Thursday fails, it would add three months to the time needed to execute a transaction.
If the extension is not reached, SPAC sponsor ARC Global Investments II said it intends to deposit $2.88 million into DWAC’s trust account to prolong the deadline for consummating an initial business combination for a period of three months until December 8.
DWAC has previously issued a warning that the SPAC might be put into liquidation if the arrangement isn’t extended.
According to Reuters earlier this week, another problem for Digital World (DWAC) is that a $1 billion PIPE pledge group of investors is due to expire on September 20 if the deal with Trump Media & Technology Group isn’t finalized. Over the past few weeks, PIPE investors have been contacted by investment banks on behalf of DWAC to inquire about extending the PIPE.
The revelation that Digital World Acquisition (DWAC) will IPO Trump’s new media firm through a SPAC merger resulted in a significant surge for the company. The news was released on October 21, and the stock increased by more than 350%. Shares of DWAC have fallen 86% from their record high of $175 on October 22 and by 75% from their highs in early March.
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