Trump social media SPAC shareholders vote to extend merger deadline to next year

video

Truth Social faces financial woes, potential lawsuit

Fox Business correspondent Charlie Gasparino reports on Truth Social’s latest troubles as the company faces a potential lawsuit from Right Forge and struggles to build up revenue.

Shareholders of the special purpose acquisition company (SPAC) taking Trump Media & Technology Group public have voted to push a merger deadline to next year.

Digital World Acquisition Corp. (DWAC) on Tuesday held a special shareholder meeting during which the SPAC said it had received enough investor support for the move to extend the deadline for a merger with Trump Media, which owns former President Trump’s TRUTH Social platform, until Sept. 8, 2023. 

The amendment for the extension required at least 65% of shareholders voting in favor of it.

The Truth Social network logo is displayed in this picture illustration from Feb. 21, 2022. (REUTERS/Dado Ruvic/Illustration / Reuters Photos)

The SPAC’s CEO, Patrick Orlando, previously adjourned and rescheduled the special meeting multiple times as part of what the company described as efforts to "solicit more votes" in favor of pushing back the merger deadline. The special meeting had originally been scheduled for Sept. 6.

TRUMP'S SOCIAL MEDIA APP FACING FINANCIAL FALLOUT

video

Digital World seeks to delay merger with Trump’s Truth Social for one year

FOX Business senior correspondent Charlie Gasparino joins ‘The Claman Countdown’ with details on the pending transaction.

Orlando’s ARC Global Investments II agreed in September to loan DWAC $2.875 million to extend the deadline by three months from Sept. 8 to Dec. 8, according to an SEC filing. Prior to Tuesday’s vote, the SPAC faced the possibility of having to liquidate if it didn’t garner enough shareholder support for the delay before early December.

TRUMP TO STAY ON HIS TRUTH SOCIAL AMID ELON MUSK TWITTER TAKEOVER

The Truth social network app icon is seen in this picture illustration from Feb. 21, 2022. (REUTERS/Dado Ruvic/Illustration / Reuters Photos)

The merger between DWAC and Trump Media is facing Securities Act-related investigations by the SEC and Department of Justice, according to a recent 10-Q SEC filing.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

DWAC and Trump Media first announced their plans to combine in October 2021.

Source: Read Full Article