Trump SPAC breaks off shareholder meeting until October 10
By Matt Egan, CNN
The blank-check firm attempting to bring former President Donald Trump’s media venture public has adjourned its special shareholder meeting until October 10.
The development is the latest in a series of delay tactics from Digital World Acquisition Corp. and comes as the shell company struggles to win shareholder approval to extend the Thursday deadline for its merger agreement.
Digital World has warned it faces potential liquidation if at least 65% of its shareholders don’t back the merger agreement extension by the end of Thursday.
During Thursday evening’s virtual shareholder meeting, Digital World CEO Patrick Orlando said the adjournment until October 10 will “provide additional time for stockholders, whether small, medium or large, to cast their vote.”
Orlando added that the SPAC (special purpose acquisition company) will issue an “important press announcement shortly” to provide additional information.
Although Digital World has warned it may be forced to liquidate if shareholders don’t extend the deadline, the blank-check firm may avoid liquidation.
Digital World said in a filing this week that its sponsor, Arc Global Investments II, plans to exercise an option to unilaterally extend the merger deadline by three months. That would require the sponsor to deposit nearly $3 million into a trust account.
Previously, Digital World Acquisition Corp., which is seeking to merge with Truth Social owner Trump Media & Technology Group, had given shareholders until end of day Tuesday to vote on whether to extend the merger agreement in order to give the deal more time to be completed.
But on Tuesday, the company kicked the can down the road. In a Securities and Exchange Commission filing, Digital World said it had adjourned its stockholders meeting to Thursday, Sept. 8 to “provide additional time” to win approval from investors.
The Trump SPAC has been mired by a series of legal and regulatory troubles amid what experts have described as red flags. The legal scrutiny includes investigations from both the Justice Department and the SEC.
Digital World has said those probes have blocked the ability to get the deal consummated.
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