The TRUTH Social website is seen on a mobile device with an image of former US president Donald Trump in the background in this illustration in Warsaw, Poland on February 23, 2022.
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Digital World Acquisition CorporationThe company, which plans to take the Trump Media and Technology Corporation public, saw its stock price fall Monday as shareholders pondered delaying the merger and the former president has to contend. faced a wide range of legal problems.
A filing Monday from the DWAC said that voting for the year-long delay will open on Tuesday. The current deadline to take Trump Media public is September 8. The DWAC has warned that it could be forced into liquidation if the deadline is not extended. A shareholder meeting is scheduled for September 6.
DWAC shares closed down nearly 8% at $25.32, down 16% this month and significantly below their 2022 peak of about $97.
A representative for DWAC did not immediately respond to a request for comment.
Trump Media and Technology Group controls Truth Social, which is is said to be facing serious financial difficulties. A merger with DWAC would give Trump’s company access to billions of dollars in publicly traded stock markets.
The former president created Truth Social to compete with Twitter after he was banned from the platform for his tweets related to the riots in the US Congress on January 6, 2021. There, hundreds of Trump supporters stormed the building to prevent Congress from confirming Joe Biden’s victory in the 2020 presidential election.
Trump has been at the center of a criminal investigation into the alleged improper removal of secret and sensitive documents from the White House. FBI agents searched the home of former president Mar-a-Lago earlier this month. One affidavit justifying the search said there is “probable cause to believe that evidence of obstruction will be found” at his home.
Last week, the DWAC warned that the damage to the former president’s popularity was dwindling may compromise the agreement. Earlier this month, Trump Media’s trademark application for “TRUTHSOCIAL” was rejected by the US Patent and Trademark Office on the grounds that the title is confusingly similar to existing registered trademarks.
The Securities and Exchange Commission and the Department of Justice have been investigating the proposed merger between DWAC and Trump Media. Federal prosecutors subpoenaed Trump Media because it probes undisclosed conversations between SPAC and Trump Media employees that may have violated securities regulations.
The former president is dealing with multiple investigations, including one into possible interference in Georgia’s presidential election process and his role in the events of January 6, 2021.