Truth Social Investment Partner extends term, avoids liquidation

Shareholders of Digital World Acquisition, the investment partner of former President Donald Trump's media startup, have voted to extend the company's merger deadline, giving it more time to close the deal, Digital World said Tuesday.

The extension will give the special purpose acquisition company, or SPAC, one more year to complete its long-stalled merger with the parent company of Trump campaign social network Truth Social.

The approval follows an intense voting campaign and comes three days before the September 8 elimination deadline. A failure of the vote would have required the SPAC to be dissolved and $300 million returned to shareholders, stripping Trump Media & Technology Group of funds from the deal.

Trump's Truth Social faces a major funding deadline

The company must still satisfy the closing conditions before the merger can be officially recognized. The Securities and Exchange Commission said in July that Digital World had Investors were misled In the official documents filed for the merger process. The SPAC will need to correct these inaccuracies and resubmit the filings before the merger process can resume.

Digital World, which said in an initial public offering statement in September 2021 that the merger process would likely take about a year, faced a number of hurdles that required shareholder-backed extensions to the timeline. The company also requested a one-year extension last September.

Shares of Digital World rose more than $17 on the news. The stock peaked in 2021 at around $175 a share.

Eric Swider, head of Digital World, said in a Truth Social post Tuesday morning: “Thank you for your outstanding support. Please understand my silence. We stay focused on the job and watch our every word. “

Trump had no immediate comment.

This is a developing story. Please check for updates.