Trump urges Digital World shareholders to vote to delay Truth Social merger
Home page and announcement of the application “Truth Social”.
Christoph Dernbach | photo union | Getty Images
Patrick Orlando, the CEO of a shell company seeking to list Trump Media and Technology Group, on Friday urged Donald Trump and Trump Media CEO Devin Nunez to facilitate an upcoming vote to extend the merger between the two companies.
“@realDonaldTrump @DevinNunes let’s raise awareness about voting,” wrote the head of Digital World Acquisition Corp. in a Truth Social post that attached information about the shareholder vote.
DWAC and TMTG representatives did not immediately respond to a request for comment.
DWAC shareholders will vote on October 10 to extend the merger. A similar vote in September did not receive the necessary investor support of 65%. Orlando then invested $2.8 million from his Arc Global Investments II company into the DWAC trust, helping it delay liquidation for the time being.
The former president has already hinted that he will close the deal to go public and use his own money to fund the media venture. “Who knows? Anyway, I don’t need funding, I’m really rich!” Any private company???” Trump wrote in a Truth Social post in early September.
DWAC is a Specialized Asset Acquisition Company, or SPAC. These so-called blanche companies find businesses to enter the public stock markets.
DWAC has until December to complete its merger with Trump Media and take the former president’s company, giving it access to billions of dollars. A successful shareholder vote will extend the deadline by about a year.
Another key deadline for the deal passed in September. Private investors who agreed to provide about $1 billion after the merger are no longer contractually required to provide that capital. DWAC reported last week that $138 million in private investment has already been withdrawn.
These are far from the only issues facing DWAC and Trump Media. The two companies are under investigation by the Department of Justice for possible security breaches related to conversations that took place between representatives of the companies prior to the merger. The Securities and Exchange Commission is also investigating the deal.
Trump Media stated that this examining litigation against the SECsaying the regulator has shelved the merger.
The former president is also the subject of numerous investigations of his own. New York Attorney General Letitia James recently announced a civil case against him, the Trump Organization, and his three older children for fraud. He is also under investigation for his actions related to seizing classified documents from the White House, his alleged interference in the 2020 presidential election, and his role in the January 6, 2021, Capitol uprising.
Trump launched Truth Social and Trump Media after being banned from Twitter and other social media platforms after riots saw hundreds of his supporters storm Congress in an unsuccessful attempt to stop lawmakers from confirming Joe Biden’s 2020 election victory.
DWAC closed more than 3% higher at $16.81, but it is far from its 2022 high of around $97.