The deadline was extended to December thanks to a lifeline from a business that the CEO of DWAC controls.
Trump SPAC Digital World Acquisition (NASDAQ:DWAC)
Trump SPAC Digital World Acquisition (NASDAQ:DWAC) increased 4.5% in premarket trading after SPAC’s sponsor contributed $2.88 million to add three months to the time required to finish the purchase with Trump’s social media company.
After the initial deadline passed, Trump SPAC sponsor ARC Global Investments II announced late Thursday that it had transferred the monies into DWAC’s trust account to extend the time to close a deal until Dec. 8. As per the company’s bylaws, this is the first of two three-month extensions.
The payment was made after DWAC CEO Patrick Orlando announced late on Thursday that the SPAC needed more time to convince retail investors to support the extension for a merger with Trump Media & Technology Group, the proprietor of Trump’s social media platform Truth Social, and that the holder vote on a deal extension had been postponed until Oct. 10.
After the vote, Trump Media issued a statement in which it implied that the SEC’s investigation of the combination might have political undertones.
In the statement, TMTG stated that “the SEC has unnecessarily prolonged its evaluation of our proposed merger, resulting in real and unwarranted financial loss to DWAC investors, almost 90% of whom are small, retail stockholders whom the SEC is tasked with protecting.” “The SEC is required by law to respond to comments within 30 days, but a startling 115 days have passed without any substantive response to DWAC’s registration statement.” The SEC must put aside any improper political considerations in the name of justice and quickly wrap up its investigation.
DWAC shares fell 11% during regular trading on Tuesday after the Trump SPAC postponed a meeting until Thursday in an effort to garner more support for a one-year renewal of the agreement. The stock fell after Reuters reported earlier on Tuesday that DWAC had been unable to secure the requisite 65% support for an extension to close its agreement with Trump’s social media platform.
Featured Image- Megapixl @Andreyyalansky19