Former President Donald Trump‘s business partners on Monday again delayed a meeting on stockholders’ final consideration for extending a merger deadline of Trump Media & Technology Group, putting the Truth Social platform’s longer-term funding plans in limbo.
Digital World Acquisition Corp. asked stockholders to approve moving the deadline for combining with Mr. Trump‘s team to next year. Because not enough stockholders were prepared to approve the extension on Monday, the company said it adjourned the meeting until November as it looks for more support.
Investors denying the extension could take more than $1 billion in funds off the table for Mr. Trump‘s team, but the former president has sounded adamant that it would not mean the end of his social media platform.
“If they don’t come up with the financing, I’ll have it private,” Mr. Trump said at a rally earlier this month in Michigan. “Truth Social is hot.”
Keeping the company private is not the only option for Trump Media & Technology Group. Mr. Trump‘s team could look for another special-purpose acquisition company to become an investor, or seek out new merger partners.
Such efforts will be complicated by the Biden administration’s scrutiny of Mr. Trump‘s business dealings. At the rally in Michigan, Mr. Trump faulted the Securities and Exchange Commission for targeting his business.
Digital World Acquisition said in regulatory filings last year that the SEC and the Financial Industry Regulatory Authority were investigating its business.
DWAC is a special-purpose acquisition company, which raises funds with the intent of merging with a private company to make it public. DWAC‘s stock dropped more than 6% in trading on Monday upon news of the delay, according to CNBC.
Mr. Trump‘s business partners cannot punt a decision on extending the merger deadline indefinitely. If the combination is going to happen, Digital World Acquisition said Monday the merger must be completed by Sept. 8, 2023.
The next stockholder meeting is scheduled for Nov. 3, within one week of the midterm elections.
Trump Media & Technology Group declined to comment on Monday.