A company seeking to merge with the parent company of social media platform Truth Social is facing a key deadline next week to complete the deal.
Digital World Acquisition Corp. (DWAC) and Trump Media and Technology Group (TMTG), Truth Social’s parent company, announced plans to merge in October 2021. DWAC is a “blank check” company formed to merge with a technology company and faces liquidation if the September 8 deadline for completing the merger is not met.
TMTG needs the money from the acquisition company to go public. If it goes through, the merger could result in $1 billion in funding.
The deadline for the merger was extended by a shareholder vote in November 2022. The Securities and Exchange Commission fined DWAC in July for allegedly planning to buy the Trump company before it raised its $300 million in IPO funds but failing to disclose the plan to investors as required.
“DWAC failed to disclose its discussions with TMTG and to disclose a material conflict of interest of its CEO and chairman,” 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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