The merger between Digital World Acquisition Corporation DWAC, a special purpose acquisition company, and former President Donald Trump’s social media firm, Trump Media & Technology Group (TMTG), is reportedly on the tenterhooks.
What Happened: Digital World CEO Patrick Orlando said Tuesday at a special shareholder meeting that he would push back the deadline for a vote on extending the life of the SPAC by 12 months to Thursday, reported Reuters.
If the deal goes through, TMTG would receive $293 million that the SPAC company has on its books and another $1 billion from a group of investors in the shape of private investment in public equity (PIPE), as per the report.
See Also: How To Buy TMTG IPO Stock
Why it Matters: Shareholders rejected Digital World Acquisition’s proposal to extend the merger deal for a year on Monday.
The proposal needed 65% of the votes to pass and in the event of a majority “no vote” the company is considering options such as extending the voting deadline or unilaterally going ahead with a six-month extension, according to a prior report.
The shareholders now have two additional days to consider the proposal. However, since most shareholders are individuals, getting them to vote has been difficult, according to Orlando, Reuters reported.
Meanwhile, the PIPE is set to expire on Sept. 20 unless the deal is sealed by that date.
Price Action: On Tuesday, Digital World Acquisition shares closed 11.4% lower at $22.13, according to data from Benzinga Pro.
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