Trump-linked SPAC adjourns meeting for three hours to continue vote on merger delay

This illustration photo shows Donald Trump’s new social media app, Truth Social, crashing on a smartphone in Los Angeles, February 21, 2022.

chris delmas | AFP | Getty Images

Digital World Acquisition Company., the SPAC aiming to go public with former President Donald Trump’s media company, adjourned its shareholder meeting for an additional three hours to allow the vote on delaying the merger to continue.

The deadline for the merger is Thursday, and the vote could decide the fate of a $1.3 billion cash injection from DWAC’s public offering and Trump Media and Technology Group’s potential listing on the stock exchange. .

Trump Media owns Truth Social, which was founded by the former president after he was banned from Twitter following the Jan. 6, 2021 Capitol Riot.

Shares of DWAC rose 6% in afternoon trading.

Digital World has previously warned that a failed vote could result in the liquidation of SPAC. More recently, DWAC CEO Patrick Orlando said he intended to launch an “integrated” extension with a $2.8 million injection from his company and DWAC sponsor ARC Global Investments II. .

The DWAC was scheduled to announce the results of the vote on Tuesday, but Orlando adjourned its special meeting after just two minutes to allow more time to vote. Early in the day, Reuters had reported that DWAC failed to garner the necessary votes for the expansion, citing sources familiar with the matter.

DWAC needs 65% shareholders to support the merger deadline extension. While 20% of those shares are held by Orlando through ARC Global Investments, he says the deal has attracted many retail investors. Orlando rallied these investors to vote on Truth Social.

Asset Media denied reports of financial turmoil which alleged that the company owed more than $1 million to a contractor. The former chairman indicated that the company may not need the cash injection from the DWAC deal.

“Anyway, I don’t need financing, ‘I’m really rich!’ Private company anyone???” Trump wrote in a Truth Social article on Saturday.

This is breaking news. Check back for updates.

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