Trump SPAC Digital World stock falls as shareholders consider merger delay

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The TRUTH Social website can be seen on a mobile device with an image of former US President Donald Trump in the background in this photo illustration in Warsaw, Poland on February 23, 2022.

Nurfoto | Getty Images

Digital World Acquisition Corporation, the company that plans to IPO Trump Media and Technology Group, saw its share price plummet Monday as shareholders consider delaying the merger and the former president faces numerous legal problems.

A Monday filing from DWAC said voting for a one-year extension would open Tuesday. The current deadline to make Trump Media public is September 8. DWAC has warned that it may have to be liquidated if the deadline is not extended. A shareholders’ meeting is scheduled for September 6.

Shares of DWAC fell more than 8% on Monday to about $25, down 16% this month and significantly below their 2022 peak of about $97.

DWAC representatives did not immediately return a request for comment.

Trump Media and Technology Group monitors Truth Social, which is reportedly facing serious financial problems. A merger with DWAC would give Trump’s company access to billions of dollars in publicly traded stock markets.

The former president created Truth Social to compete with Twitter after he was banned from the platform for his tweets related to the U.S. Capitol riot on January 6, 2021. On that day, hundreds of Trump supporters stormed the building to prevent it from happening. Congress would confirm Joe Biden’s victory in the 2020 presidential election.

Trump is at the center of a criminal investigation into the alleged improper removal of sensitive and classified documents from the White House. FBI agents searched the former president’s home in Mar-a-Lago earlier this month. An affidavit justifying the search said there was “probable reason to believe evidence of obstruction will be found” at his home.

DWAC warned last week that damage to the former president’s waning popularity could hurt the deal. Earlier this month, Trump Media’s trademark application for “TRUTHSOCIAL” was rejected by the US Patent and Trademark Office on the grounds that the title was confusingly similar to existing registered trademarks.

The Securities and Exchange Commission and the Department of Justice are investigating the proposed merger between DWAC and Trump Media. Federal prosecutors have sued Trump Media as it investigates possible secret conversations between the SPAC and Trump Media employees that may have violated securities regulations.

The former president faces multiple investigations, including an investigation into possible interference in Georgia’s presidential election process, and his role in the events of January 6, 2021.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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