Shares of Digital World Acquisition Corp. DWAC are tumbling in premarket trading on Tuesday.
Shareholders have rejected the special purpose acquisition company’s proposal to extend by a year the deadline for its merger with former President Donald Trump’s Trump Media & Technology, which operates the Truth Social platform, Reuters reported.
When the votes garnered until Monday were tallied, it appears that Digital World may not succeed in getting the 65% threshold required to implement the proposal, the report noted, citing sources. The company is toying with a couple of options in the eventuality of a majority 'no vote.' including extending the voting deadline or unilaterally going ahead with a six-month extension.
The extension sought would help the company get SEC approval for the proposed combination.
In premarket trading on Tuesday, DWAC shares are plummeting 20.77% to $19.80, according to Benzinga Pro data.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
