The merger between Digital World Acquisition Corporation DWACa special purpose acquisition company and past President Donald Trump’s social media company, Trump Media & Technology Group (TMTG), is said to be on the brink.
What happened: CEO of the digital world Patrick Orlando told an extraordinary shareholders meeting on Tuesday that he would postpone the deadline for a vote on extending the life of the SPAC by 12 months to Thursday, reported Reuters.
If the deal goes through, TMTG would receive $293 million that the SPAC entity has on its books and an additional $1 billion from a group of investors in the form of private public equity investments (PIPE), so the report.
See also: How to buy TMTG IPO shares
Why it matters: shareholders rejected Digital World Acquisition’s proposal to extend the merger deal by a year on Monday.
The proposal needed 65% of the vote to pass, and in the event of a “no” majority, the company is considering options such as extending the voting deadline or a unilateral six-month extension, according to a previous report.
Shareholders now have two more days to consider the proposal. However, since most of the shareholders are individuals, Orlando said it was difficult to get them to vote, Reuters reported.
Meanwhile, the PIPE expires on September 20th unless the deal is sealed by that date.
Price promotion: On Tuesday, shares of Digital World Acquisition closed 11.4% lower at $22.13 Data from Benzinga Pro.
Continue reading: Trump said unfazed by DeSantis “stealing” his body language, some Republicans agree it’s a rip-off
