Trump SPAC Digital World shares fall as shareholders consider delaying merger

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

Nurphoto | Getty Images

Digital World Acquisition Corporation, the company that plans to take Trump Media and Technology Group public, saw its stock price plummet on Monday as shareholders consider delaying the merger and the former president faces a host of legal issues.

A Monday filing from DWAC said voting for a one-year term would open on Tuesday. The current deadline to go public with Trump Media is September 8. DWAC has warned it could be forced to liquidate if the deadline is not extended. A meeting of shareholders is scheduled for September 6.

Shares of DWAC were down more than 8% at around $25 on Monday, down 16% this month and well below their 2022 high of around $97.

Representatives for DWAC did not immediately return a request for comment.

Trump Media and Technology Group controls Truth Social, which is would face serious financial difficulties. A merger with DWAC would give Trump’s company access to billions of dollars in publicly traded equity markets.

The former president created Truth Social to compete with Twitter after he was banned from the platform for his tweets regarding the January 6, 2021 U.S. Capitol riot. That day, hundreds of Trump supporters stormed the building in an effort to prevent Congress from confirming Joe Biden’s victory in the 2020 presidential election.

Trump has been at the center of a criminal investigation into the allegedly improper removal of sensitive and secret White House documents. FBI agents searched the former president’s home in Mar-a-Lago earlier this month. An affidavit justifying the search said there were “probable reasons to believe that evidence of obstruction will be found” at his home.

The 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 denied by the U.S. Patent and Trademark Office on the grounds that the title bore a confusing similarity to existing registered marks.

The Securities and Exchange Commission as well as the Department of Justice have been investigating the proposed merger between DWAC and Trump Media. Federal prosecutors have subpoenaed Trump Media as they investigate possible undisclosed conversations between PSPC 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.

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