A SPAC set to take formers President Donald Trumps New Media Company Public faces another setback as it nears liquidation.
What happened: Less than a month later did not receive shareholder approval to extend voting on the merger of Digital World Acquisition Corporation DWAC and Trump media and technology groupa new vote was delayed again.
A shareholder vote on Monday was adjourned after the SPAC failed to secure the required 65% of shareholders to vote on an agreement to extend the merger deadline to September 9, 2023.
The new date for extending the merger vote has passed set to for November 3, 2022.
CEO of Digital World Acquisition Patrick Orlando used executive power to adjourn the meeting and postpone the vote, which he has done on numerous occasions.
The current merger voting deadline is December 8, 2022, after the SPAC sponsors paid to extend the original September 8, 2022 voting deadline by three months. Under the terms of the original SPAC offer, the sponsors can pay for an additional three-month delay, which would mean March 8, 2023 final deadline for the completion of the merger without the support of 65% of shareholders.
Related link: New book reveals Donald Trump treated the White House like a movie or TV appearance: ‘Before I took the presidency’
Why it matters: News of the meeting’s adjournment comes as a whistleblower filed a complaint with the SEC. Senior Vice President of Trump Media William Wilkerson filed the securities infringement complaint.
Wilkerson said he believes the deal will not go through and the company (Trump Media) faces major bankruptcy concerns.
Both the SPAC and the associated merger partners have faced with financial hardship lately. There are also investigations by the SEC and a federal jury into the deal, which could delay the merger and ultimately result in the deal not going through.
Also the SPAC merger lost several investors involved in the PIPE (Private Investment in Public Equity) financing of the transaction following a key deadline.
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