Trump's Truth Social buyer gets more time to finalize merger
Shareholders of a shell company that has been trying for nearly two years to merge with former President Donald Trump's media company have approved an extension 12 months to finalize the agreement. .
Shareholders of a cash-rich shell company on Tuesday approved a move that will give the company an additional 12 months to complete its long-delayed merger with the former President Donald J. Trump's social media company.
Shareholder vote increases likelihood that Trump Media & Technology Group will have access to at least $300 million in much-needed cash to run Truth Social - a right-wing social media platform. his political opponents, as well as the federal and state prosecutors who filed the lawsuits. four indictments against him. Online advertisements on the social media platform are also a vital part of Mr. Trump's fundraising efforts for his 2024 presidential campaign.
The shell company , Digital World Acquisition Corporation. , raised the $300 million in a September 2021 IPO. Just over a month later, the company, set up as a Special Purpose Acquisition Company, or SPAC, announced a merger agreement with Trump Media.
Had Digital World shareholders not approved the extension, the company would have had to return the money raised from its IPO in sotck exchange. to shareholders Friday.
A SPAC raises funds from investors in an IPO. hoping to find a private company to acquire. Federal securities laws require SPACs to liquidate and return their cash to shareholders if a transaction cannot be completed within a specified time period – often two years.
The merger was announced when Truth Social was still in the planning stages and Mr. Trump was banned from posting on most social media platforms after violent protests at the US Capitol on January 6, 2021.
The deal had been delayed by a regulatory investigation into allegations that Digital World misled investors about negotiations it had with Trump Media prior to its IPO in stock market in September, which is prohibited by securities laws. Federal prosecutors also opened an investigation into allegations of insider trading in Digital World stock prior to the merger announcement in October 2021.
July , Digital World has reached an agreement with Securities. and Exchange Commission which required it to review certain regulatory filings and pay an $18 million penalty if the merger was completed. Federal prosecutors have charged three men, including a former Digital World executive, with participating in a $22 million insider trading scheme.
In the In the run-up to regulatory settlement, Digital World ousted its original chief executive and main promoter, Patrick Orlando, and reorganized its board of directors. Mr. Orlando, however, remains a significant shareholder in Digital World.
Digital World has been lobbying for shareholders – most of whom are retail investors – to approve the move to give the company more time to finalize the merger. She hired a consulting firm to encourage 65% of the company's shareholders to vote for the extension. the extension, sending email alerts to Truth Social subscribers urging them to vote for the extension if they were also Digital World shareholders.
" Thank you for all of your outstanding support,” Eric Swider, Director of Digital World. executive, said on Truth Social shortly after the results of the vote on an extension were announced. “Please understand my silence. We stay focused on the task at hand and watch our every word.
Chad Nedohin, a Digital World investor who has been a strong advocate for the merger, credited SPAC shareholders seeking approval for the extension, calling them "truly impressive activists". Mr. Nedohin organizes a
Shareholders of a shell company that has been trying for nearly two years to merge with former President Donald Trump's media company have approved an extension 12 months to finalize the agreement. .
Shareholders of a cash-rich shell company on Tuesday approved a move that will give the company an additional 12 months to complete its long-delayed merger with the former President Donald J. Trump's social media company.
Shareholder vote increases likelihood that Trump Media & Technology Group will have access to at least $300 million in much-needed cash to run Truth Social - a right-wing social media platform. his political opponents, as well as the federal and state prosecutors who filed the lawsuits. four indictments against him. Online advertisements on the social media platform are also a vital part of Mr. Trump's fundraising efforts for his 2024 presidential campaign.
The shell company , Digital World Acquisition Corporation. , raised the $300 million in a September 2021 IPO. Just over a month later, the company, set up as a Special Purpose Acquisition Company, or SPAC, announced a merger agreement with Trump Media.
Had Digital World shareholders not approved the extension, the company would have had to return the money raised from its IPO in sotck exchange. to shareholders Friday.
A SPAC raises funds from investors in an IPO. hoping to find a private company to acquire. Federal securities laws require SPACs to liquidate and return their cash to shareholders if a transaction cannot be completed within a specified time period – often two years.
The merger was announced when Truth Social was still in the planning stages and Mr. Trump was banned from posting on most social media platforms after violent protests at the US Capitol on January 6, 2021.
The deal had been delayed by a regulatory investigation into allegations that Digital World misled investors about negotiations it had with Trump Media prior to its IPO in stock market in September, which is prohibited by securities laws. Federal prosecutors also opened an investigation into allegations of insider trading in Digital World stock prior to the merger announcement in October 2021.
July , Digital World has reached an agreement with Securities. and Exchange Commission which required it to review certain regulatory filings and pay an $18 million penalty if the merger was completed. Federal prosecutors have charged three men, including a former Digital World executive, with participating in a $22 million insider trading scheme.
In the In the run-up to regulatory settlement, Digital World ousted its original chief executive and main promoter, Patrick Orlando, and reorganized its board of directors. Mr. Orlando, however, remains a significant shareholder in Digital World.
Digital World has been lobbying for shareholders – most of whom are retail investors – to approve the move to give the company more time to finalize the merger. She hired a consulting firm to encourage 65% of the company's shareholders to vote for the extension. the extension, sending email alerts to Truth Social subscribers urging them to vote for the extension if they were also Digital World shareholders.
" Thank you for all of your outstanding support,” Eric Swider, Director of Digital World. executive, said on Truth Social shortly after the results of the vote on an extension were announced. “Please understand my silence. We stay focused on the task at hand and watch our every word.
Chad Nedohin, a Digital World investor who has been a strong advocate for the merger, credited SPAC shareholders seeking approval for the extension, calling them "truly impressive activists". Mr. Nedohin organizes a
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