Shares of the SPAC trying to take Trump Media & Technology Group public fell significantly today (Friday)
The main reason: The blank-check firm or SPAC confirmed late Thursday that it failed to get investor approval for a one-year extension of its merger deadline and will pay nearly $3 million to get three more months to complete the deal.
Tweet on Trump’s social media ‘The Truth”
Shares of The Truth SPAC falls!
The Trump Media public fell Friday, after the blank-check firm confirmed that it failed to get investor approval for a one-year extension of its merger deadline, and will pay nearly $3 million to get extra months to complete the deal, via @WSJ pic.twitter.com/N0BWJYAzXj
— The_Journalbiz (@the_journalbiz) September 9, 2022
The stock was recently down about 1.2% to $$23.08. It has swung between $20 and $25 most of the week.
The Thursday announcement,
expected after the SPAC adjourned its shareholder meeting for two days on Tuesday and said in a filing that it was prepared to pay for the extension, tightens an already narrow path for the merger to get completed.
Digital World Acquisition management can pay another $3 million in December to get a total of six more months from now to complete the merger. Many analysts say it might need longer than that to resolve investigations by the SEC and federal prosecutors.
“The SEC has needlessly delayed its review of our proposed merger, causing real and unnecessary financial harm to DWAC investors,” Trump Media & Technology Group said in a Thursday statement.
“The SEC needs to set aside any improper political considerations and bring its review to a swift conclusion.”