SPAC Digital World Acquisition ( NASDAQ: DWAC ), which is taking Trump's social media company and Truth Social app public, rose 3.4% in after hours trading after the company said it would extend the time it needs to complete a deal by three months.
SPAC sponsor ARC Global Investments II said if the Thursday vote fails to lead to an extension of the deal it plans to contribute $2.88 million to DWAC's trust account to extend the time to consummate an initial business combination for a three-month period, until December 8, according to an 8-K filing.
The update comes after DWAC shares plunged 11% during regular trading on Tuesday after the SPAC adjourned a meeting until Thursday to try to gain additional support for a one-year extension of the deal. The shares dived down after Reuters reported earlier Tuesday that DWAC failed to win approval for an extension to complete its deal with Trump's social media company.
Digital World ( DWAC ) executives didn't believe they have secured enough votes to secure a one year extension to complete the deal, according to a Reuters report, which cited people familiar.
DWAC has warned previously that if the deal isn't extended, the SPAC may be forced to liquidate.
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SPAC Digital World gains after saying it will extend deal for 3-months if vote fails