Delayed Earnings Report Causes Trump-Linked SPAC to Postpone Merger

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Trump Media and Technology Group’s SPAC, Digital World Acquisition Group, asked for a postponement of the release of its results report.
The delay happens while the SPAC is being investigated for breaking securities laws.
The SPAC is also attempting to put off the merger with TMTG until this September of the next year.

Image Source- The Guardian

According to a regulatory filing made on Tuesday, the special purpose acquisition company known as Digital World Acquisition Group is requesting more time to submit its financial report before merging with Trump Media and Technology Group and becoming public.

DWAC stated its intention to report within the Securities and Exchange Commission’s five-day grace period following the necessary reporting date in a file with the agency. The deadline for publicly listed corporations to declare profits is 35 days following the end of a quarter.

For the three-month and six-month periods ending June 30, DWAC reported that it experienced a net loss of around $4.7 million and $6.5 million, respectively. It stated the sums were still being examined and might not match the numbers it had previously provided.
Truth Social, owned by Trump Media, is a social media platform that aims to compete with Twitter. In January 2021, Twitter banned the then-president for tweeting while throngs of his supporters stormed the U.S. Capitol in an unsuccessful attempt to prevent Congress from confirming Joe Biden as vice president. Devin Nunes, a former Republican congressman and one of Trump’s closest friends in Congress, is the CEO of Trump Media.

The delayed earnings report follows DWAC’s request to shareholders last week to extend the deadline for its merger with Trump Media by one year from September 8 to September 15. On September 6, there will likely be a shareholder meeting.

A request for comment from DWAC was not immediately complied with.

As part of their investigations into the merger that would make Trump’s company public and potentially give it access to billions of dollars in money, federal prosecutors and the SEC have subpoenaed DWAC. The contract may be in jeopardy because of probes, DWAC has previously warned.

DWAC investigation-related misconduct against Trump has not been alleged. Nevertheless, he is dealing with a number of legal issues, such as a federal criminal investigation into the removal of White House records, a criminal investigation into meddling in Georgia’s presidential election, and a continuing federal criminal investigation into the riot that occurred on January 6, 2021, in the Capitol.

Prior to the SPAC’s initial public offering, a deal was reportedly proposed by Patrick Orlando, CEO of DWAC, according to The New York Times. Securities regulations that forbid SPACs from preparing mergers before initial public offerings (IPOs) may be broken by this. Before looking for a merger partner, SPACs, often called “blank check” businesses, sell shares.

Tuesday saw DWAC’s stock close up over 4% at $30.81, a significant decline from the highs it reached following the announcement of the Trump agreement in October.

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