Bull Session: Will the extension vote of DWAC and Trump Media be successful?
$Digital World Acquisition Corp (DWAC.US)$ gapped down 21% to start the trading session Tuesday after a report indicated shareholders rejected a one-year deadline extension that the special purpose acquisition company requested to complete its planned merger with Donald Trump's Trump Media & Technology. As the adjourned vote at 12:00 p.m. on September 8 approaches, investors of DWAC face a question: Will the vote be successful?
A special purpose acquisition, or SPAC, is a shell company that raises money from investors and lists publicly with the sole intention of merging with a private company to take it public.
Shareholders are voting this week on an extension of up to a year, allowing the companies additional time to address government investigations into the deal and make other necessary disclosures. The SPAC needs 65% of shareholders to support the extension.
The SPAC merger was announced nearly a year ago. Investigations by the Securities and Exchange Commission and federal prosecutors have hindered the deal, which could raise up to roughly $1.3 billion in cash for the former president's firm. Trump Media & Technology Group operates the social-media platform Truth Social, an alternative to Twitter.
If the vote is successful
Not surprisingly, Digital World has had to navigate itself through a number of unknowns. If the company meets the 65% support rate from its shareholders, it will provide more time for the company management to proceed further with the merger deal with Trump Media & Technology, which operates the Truth Social App.
A successful extension vote would be essential for Digital World shares to hold fairly steady.
If the vote went south
The uncertainty about the voting is unusual because a failure to approve the extension will almost certainly cost investors money. If the deal falls through, shareholders would likely get roughly $10.2 a share, about half of the current share price.
The failure of shareholders to approve the full-year extension would make the merger's completion less likely, some analysts said. Six months might not be enough time to complete the merger because the SPAC and social-media firm would have to undergo an extended process of regulatory filings and SEC responses.
We're looking forward to a very successful vote.
Patrick Orlando, the CEO of Digital World Acquisition in an interview with IPO Edge last Thursday.
Is the vote going to meet its 65% requirement? What's your opinion?![]()
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Source: WSJ, Bloomberg
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股票 : win
Dons Son 股票 : I hope your right AMC
jacari : good question
Eddie Jauriqui : if anything you'll be something I would name it if I have majority of a stocks why doesn't my companys acquire it
obliging Narwhal_286 : if their extending another 3 hrs is it because they are short votes?
Chatterbox Moo OP obliging Narwhal_286 : It could be