The “blank check” buyout company that plans to merge with Donald Trump’s social media company has delayed a shareholder vote to approve a one-year extension of the deadline to complete the deal.
Digital World Acquisition Corp. (DWAC) said on Tuesday it would delay the release of the results of the vote, which was scheduled for Sept. 6.Reuters on Monday report The company failed to get enough shareholder support to approve a year-long respite from its merger with Trump Media & Technology Group (TMTG).
Digital World was due to announce the results of the vote at noon ET on Tuesday, but CEO Patrick Orlando announced he was adjourning the shareholder meeting to Thursday to give shareholders more time to vote.
Balance of $1.3 billion
When the merger closes, Trump’s media company will receive $1.3 billion in funding, along with the future of the digital world. In the absence of an extension to complete the transaction, DWAC may be forced to liquidate if it cannot complete the transaction by September 8, according to to regulatory documents.
DWAC shares, as the so-called special purpose acquisition company, plunged 15% in afternoon trade on Tuesday. The stock has lost nearly 60% of its value since the start of the year.
Digital World and TMTG face Disadvantages including surveys Regarding the merger of the SEC and DOJ. Those investigations delayed the merger, which in turn prompted DWAC to demand more time from its shareholders to complete the deal.
“We are working hard to record all upcoming votes,” Orlando said in announcing the postponement of the shareholder meeting.
Digital World did not immediately respond to a request for comment.
Digital World’s latest twist is a far cry from its initial foray into Trump’s social media business, which runs the right-wing Truth Social app. DWAC shares rise as investors cheer DWAC’s merger with Trump’s company in late 2021 1,200% a day Hopefully TMTG can score points for its “non-awakening” content.
In the days leading up to the vote, there were signs that DWAC shareholders may not have voted at a high enough rate for the measure to pass. Digital World needs a 65% shareholder vote to extend the measure to take effect.
Voting results
Typically, when shareholders are asked to vote on issues such as new directors to the board or other measures, shareholders receive their votes before the general meeting. The results of the vote were then announced at the meeting.
Orlando appeared on a webcast called “DWAC’d Live” on Aug. 30, urging his shareholders to vote. He noted that individual investors, who make up the majority of Digital World’s shareholders, typically do not participate in such votes in the same proportion as institutional shareholders.
“I believe we’re majority owned by retailers and it’s important to have our shareholders vote,” Orlando said during an Aug. 30 webcast.[T]His decisions are made by the shareholders, if you don’t vote, you don’t vote, no. 1 and 2, you can’t hear. “
