Digital World Acquisition Corp. (NASDAQ:DWAC) has decided to push back its extension vote originally scheduled for today to 10 am ET September 5 as it works through several changes to the initial deal.
Last week, the SPAC filed an update to its proposed combination with Trump Media & Technology Group (TMTG) that set up several new deadlines for the two sides to get through as it works to get the deal over the finish line.
First up, TMTG needs to provide updated financials to the SPAC and both will be working to re-negotiate the deal’s PIPE with investors. The deadline set for each of these processes is August 31, so all sides should have a better idea of where things sit before voting on an extension under this new date.
But, the new date also leaves little wiggle room for drumming up participation from retail investors who may own more than 90% of the SPACs public float. Digital World’s current transaction deadline sits at just three days after the new meeting date on September 8, and the last time it needed to get enough votes for an extension it took six adjournments to do so.
Digital World CEO Eric Swider said in its press release on the postponement that “Our SPAC is at a defining crossroads”, and it certainly will be a busy couple of months to complete the myriad tasks the team as set for itself, even with this extension secured.
The two sides initially announced their deal to take Donald Trump’s new social platform and media company public back in October 2021. They recently agreed to pay an $18 million fine as a part of an SEC investigation, but Trump’s legal challenges outside of the transaction have only ramped up since.
The extension on the ballot for Digital World would allow it to extend the deadline by three months up to four times until September 8, 2024, without needing to call an additional vote.