Former President Donald Trump’s planned merger between his Truth Social company and a blank-check SPAC is on life support, Reuters reports.
Digital World Acquisition, a special purpose acquisition company, launched last year with plans to infuse over $1 billion into the Trump Media & Technology Group, which owns Truth Social.
But the company is facing multiple federal investigations looking into whether it negotiated the terms of the deal before it went public.
The company asked shareholders to vote by Monday to extend the company’s deadline to finalize the merger by one year.
The company appears well short of the 65% of shareholders it needs for the delay, putting the future of the merger in doubt.
What’s next?:
Digital World CEO Patrick Orlando said last week that the company was having trouble getting individual investors to vote through their brokers.
The company could seek to delay the vote deadline in hopes of garnering more support.
But executives have already been considering alternative options.
Without additional action, the SPAC is set to liquidate on Thursday and return all of the money it raised during its IPO last year.
Trump shrugs:
“TRUTH is doing really well,” Trump insisted over the weekend.
“It has become our MAGA VOICE, but also a voice for the RINOs and Radical Left Lunatics,” he wrote. “Engagements are far better, more interesting, and spirited than anywhere else. I like it much better than Twitter, which is a complete mess. Sign up on TRUTH now, only getting stronger. Google is coming along nicely (I think?). 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???”
