Digital World Acquisition Corp DWACthe blank check company set to merge with the former president Donald Trump’s Social media company, is reportedly giving itself three more months of life after failing to secure a 12-month extension from shareholders to complete the deal.
What happened: As of Thursday, just 40% of DWAC shareholders had voted to extend the deal by 12 months, Reuters reported, citing people familiar with the matter.
The Special Purpose Acquisition Company (SPAC) said the voting deadline has now been extended to October 10.
Also on Thursday, DWAC asked the US Securities and Exchange Commission (SEC) concluding his review by saying, “The SEC has failed to provide meaningful feedback on DWAC’s registration statement for an amazing 115 days, and counting.”
See also: How to buy TMTG IPO shares
Why it matters: Digital World shareholders were given two extra days to decide the fate of the merger this week.
If the deal goes through, TMTG would receive $293 million through the SPAC and an additional $1 billion from private public equity investments.
Patrick OrlandoDigital World’s CEO said this week that getting them to vote was difficult because most of the shareholders are individuals.
Digital World has revealed that the SEC, the Financial Industry Regulatory Authority and federal prosecutors are investigating the merger, but according to Reuters there is no clarity on the nature of the investigation.
Price promotion: On Thursday, DWAC shares rose 1.9% to $23.80 in after-hours trading after closing 1.2% higher at $23.35 in the regular session Data from Benzinga Pro.
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