The company, which aims to merge with the social media platform, Truth Social’s parent company, faces an important deadline next week to complete the deal.
Digital World Acquisition Corp. (DWAC) and Trump Media and Technology Group (TMTG), the parent company of Truth Social, announce It plans to merge in October 2021. DWAC is a “blank check” company created to merge with a technology company, and faces liquidation if it does not meet a September 8 deadline to close the merger.
TMTG needs money from the buyout firm to go public. If the deal goes through, the merger could result in $1 billion in financing.
The merger deadline has been extended to November 2022 by a shareholder vote. The Securities and Exchange Commission fined DWAC in July for allegedly planning to buy Trump’s company before it raised $300 million in IPO money, but did not disclose the plan to investors as required.
“DWAC failed to disclose its discussions with TMTG and failed to disclose a material conflict of interest between its CEO and the Chairman of the Board,” SEC Enforcement Director Gurbir Grewal said in a statement at the time.
Three Florida men were also arrested in June on insider trading charges related to the merger, according to the Justice Department.
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