Ex-President Donald Trump’s business associates are proposing to defer their merger with Truth Social’s team, telling stockholders that they will need to wait another year before closing the deal.
Digital World Acquisition Corp. announced Thursday that it sent stockholders information about a proposal to extend timeline for combination to September 2023..
According to documents filed with the U.S Securities and Exchange Commission on Thursday, DWAC’s plans will be decided at a meeting in the next month.
” While we will make every effort to close the business combination within the shortest time possible, the board of directors (the “board”) feels that there won’t be enough time to do so before the termination date,” stated the regulatory filing.
” According to the board, in order for the company combination to go through, it will be necessary to get the extension .”
DWAC is a company that acquires special purpose companies. It stated its board believed it won’t be able complete the transaction before September 2022 and would have to liquidate the stock if it was not granted an extension.
The proposed merger with Trump Media & Technology Group (Truth Social’s team) has been subject to governmental investigations and business pressures.
DWAC stated in its regulatory filings that it was contacted by the SEC (Securities and Exchange Commission) last year.
The SEC requested information from DWAC, Mr. Trump’s staff and FINRA sought records prior to the merger agreement.
Truth Social faces business pressures as well, with a debt of more than $1M to RightForge (an internet infrastructure service targeted at conservatives), Fox Business reporting.
RightForge CEO Martin Avila did not comment on the reported dispute, but said that he wanted to support Mr. Trump.
” We’re committed to continuing to support the president and his business venture,” he stated.
Trump Media & Technology Group did not comment on DWAC’s regulatory filing or its dispute with RightForge.
