: Trump’s Truth Social merger with SPAC wins 1-year reprieve with shareholders vote

by | Sep 5, 2023 | Stock Market

The long-stalled talks to merge former president Donald Trump’s Truth Social with a blank check firm, was granted a reprieve on Tuesday after shareholders of the special acquisition company voted to extend a negotiation deadline for another year. Digital World Acquisition Corp.
which announced plans in 2021 to merge with the Trump Media and Technology Group and take it public, would have been forced to cancel the deal and liquidate on Friday if its shareholders hadn’t agreed to grant an extension.

The future of Trump’s media company had been in question if the deal fell apart. Earlier this year, Truth Social laid off staff as the talks stalled.   DWAC had been furiously lobbying shareholders to roll back the clock on the deadline. On Tuesday morning, shareholders voted to approve the extension for another 12 months, the Wall Street Journal reported. Representatives for DWAC and Trump’s media group didn’t immediately respond to messages seeking comment. The negotiations to finalize the deal to pump some $300 million of DWAC’s money into Trump’s media company had encountered numerous hurdles over the more than two years since the merger agreement was announced. DWAC has no operations and would have to return the $300 million it raised in an initial public offering to do a deal if it couldn’t close a transaction within two years of its IPO. In July, DWAC agreed to settle fraud charges with the Securities and Exchange Commission alleging it misled investors in the deal.  A SPAC is typically created as a shell company to rais …

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