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Trump SPAC Digital World Acquisition (NASDAQ:DWAC), the blank-check firm seeking to merge with Trump’s media company, delayed a special shareholder meeting for Thursday until Sept. 5. DWAC fell 3.1% in after hours trading.
The meeting will now occur on Sept. 5 at 10 a.m. Eastern time, according to an 8-K filing.
The vote that was originally scheduled for Thursday would allow shareholders to extend the deadline for Digital World (DWAC) to complete a deal with Trump Media & Technology by a year. DWAC shareholders voted in November to extend the time DWAC has to complete a deal by a year after the holder vote had been adjourned six times.
If the extension is not approved and the company doesn’t initiate a business combination by Sept. 8, DWAC will have to unwind and return about $300 million to investors.
The latest development for DWAC, which is trying to take Trump’s social media platform Truth Social public, comes a week after the outside date, the deadline for when the parties can walk away from the deal, was extended until Dec. 31.
Last year, Digital World (DWAC) struggled to get the necessary 65% of shares that must be voted in favor of a deal, many of them from retail holders, to approve a deal extension.
Digital World (DWAC) shares have fallen 45% over the past year as the SPAC has dealt with several regulatory investigations and continued delays on its deal to merge with Trump’s media company.
