A firm aiming to merge with the social media platform Truth Social’s parent company faces an important deadline next week to close 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 created to merge with a technology company, and faces liquidation if it doesn’t meet a Sep. 8 deadline for the merger to close.
TMTG needs the money from the acquisition firm to go public. If it goes through, the merger could result in $1 billion in funding.
The deadline for the merger was extended in Nov. 2022 by a shareholder vote. The Securities and Exchange Commission fined DWAC in July for allegedly planning on buying the Trump company before it raised its $300 million in IPO funds, but not revealing the plan to investors as required.
“DWAC failed to disclose its discussions with TMTG and failed 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.