By Svea Herbst-Bayliss and Echo Wang
NEW YORK - The blank-check acquisition company that plans to merge with former U.S. President Donald Trump's social media firm is giving itself more time to get investors to agree to an extension to complete the deal after support fell short again.
Digital World Acquisition Corp (DWAC) Chief Executive Patrick Orlando on Thursday said he is extending a voting deadline until Nov. 22.
DWAC has failed several times to secure support for a one-year extension to the deal because many in its shareholder base are individuals investors, such as fans of Trump, who are not accustomed to voting their shares.
At stake is a $1.3 billion cash infusion that Trump Media & Technology Group (TMTG), which operates Trump's Truth Social app, stands to receive from DWAC. DWAC inked a deal in October 2021 to take TMTG public.
DWAC shares, which have tumbled nearly 70% since January, inched up modestly in early trading on Thursday to $16.31.
The SPAC had already adjourned its shareholder meeting until Thursday from Oct. 10. Before that it had delayed several times, moving the deadline to Oct. 10 from Sept. 8, and before that from Sept. 6.
DWAC needs the support of 65% of its shareholders in order to have another year to complete the deal, which has been delayed by investigations by the federal government and financial regulator the U.S. Securities and Exchange Commission.
By Sept. 26, DWAC had only 43% of shareholders' approval, according to a document seen by Reuters.
