Update3pm : Adds meeting adjourned until 5pm.
Trump SPAC Digital World acquisition ( NASDAQ: DWAC ) adjourned a shareholders vote for the second time to extend the time to complete a deal with Trump's social media company until 5pm on Thursday. DWAC rose 5.5%.
DWAC CEO Patrick Orlando made the comments at the beginning of the meeting that was originally scheduled for 12pm. Orlando said that DWAC needs additional time for votes.
The vote delay comes after the original DWAC holder vote was delayed until Thursday from Tuesday as the SPAC tried to pursued more retail investors to vote in favor the year extension. Digital World ( DWAC ) shares plunged 11% on Tuesday after Reuters reported that DWAC failed to win approval for an extension to complete its deal with Trump's social media company.
Late in the day on Tuesday DWAC's sponsor disclosed that it would extend the time it needs to complete a deal by three months if a Thursday vote fails.
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.
DWAC has warned previously that if the deal isn't extended, the SPAC may be forced to liquidate.
Another issue for Digital World ( DWAC ) is that a $1 billion PIPE commitment group of investors is set to expire on Sept. 20 unless the transaction with Trump Media & Technology Group is completed, Reuters reported earlier in the week. Investment banks for DWAC have been contacting PIPE investors in the last few weeks to see if they would consider extending the PIPE.
Digital World Acquisition ( DWAC ) saw a massive rally in wake of news that it will take Trump's new media company public via a SPAC merger. The stock gained more than 350% when the news was announced Oct. 21. DWAC shares have dropped 75% from their highs in early March and have plunged 86% from an all-time high of $175 on Oct. 22.
Dear Readers: We recognize that politics often intersects with the financial news of the day, so we invite you to click here to join the separate political discussion .
For further details see:
Trump SPAC Digital World adjourns holders vote until 5pm on Thursday (update)