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Trump-linked SPAC again adjourns meeting to keep vote on merger delay

This illustration photo shows Donald Trump’s new social media marketing app Truth Social, glitching on a smartphone in LA, February 21, 2022.

Chris Delmas | AFP | Getty Images

Digital World Acquisition Corp., the SPAC looking to take former President Donald Trump’s media company public, adjourned its shareholder meeting until Oct. 10 o allow voting to keep on delaying the merger.

DWAC had already twice adjourned the meeting early in the day after previously adjourning it Tuesday. The deadline for the merger is Thursday, and the vote could decide the fate of a $1.3 billion cash infusion from DWAC’s public offering and Trump Media and Technology Group’s potential listing on the currency markets.

It had been unclear what the adjournment designed for the offer. DWAC’s leader, Patrick Orlando, posted on Truth Social that “important info will undoubtedly be disseminated on Truth later today.” Shares of DWAC fell about 3% on light volume following the market closed.

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

Digital World previously warned that the vote’s failure you could end up the SPAC’s liquidation. Recently, DWAC CEO Patrick Orlando said he intends to initiate a “built-in” extension with a $2.8 million injection from his company and DWAC sponsor ARC Global Investments II.

DWAC have been scheduled to announce the vote results on Tuesday, but Orlando adjourned its special meeting after just two minutes to supply more times for voting. Earlier that day, Reuters had reported that DWAC had didn’t garner the votes essential for the extension, citing sources acquainted with the problem.

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

Trump Media has denied reports of financial strife that alleged that the business owed over $1 million to a contractor. The former president has indicated that company might not need the money infusion from the DWAC deal.

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

That is breaking news. Check back for updates.

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