Donald Trump’s Media Company Faces Setback As SPAC Seeks Approval To Extend Time To Complete Deal

deadline.com:

The special purpose acquisition vehicle backing the parent company of Donald Trump’s social media platform may need to call it quits after it has yet to garner enough shareholder support for an extension that would give the deal more time to close.Shares of Digital World Acquisition Corp., traded on the Nasdaq, are down 17%.Reuters reported that at a special shareholder meeting on Tuesday, CEO Patrick Orlando pushed back a deadline until noon on Thursday for a vote on extending the term of the SPAC, something that will give another year to complete the deal to merge with Trump Media and Technology Group.

If 65% of shareholders don’t approve the one-year delay Orlando is requesting, the SPAC may be forced to liquidate, delivering a setback to the financial plans for Trump’s company.SPACs are also called “black check” companies that go public, raise cash and search for something to buy, taking the target public in the process without the need for a formal IPO.

They must compete a transaction within a given timeframe.But the TMTG deal, announced last year, has been slowed by a federal probe and amid reported financial difficulties.

The Truth Social app was recently barred from the Google Play store for violating content moderation policies. It’s still available on the Apple App Store and online.