Sep 8, 2022 - Economy & Business
Trump's Truth Social falls short on shareholder vote
Former President Trump again didn't get enough votes, this time for the blank check company seeking to take his social media company public.
Driving the news: Digital World Acquisition Corp. on Thursday said it would adjourn its shareholder meeting until October 10, after failing to secure at least 65% shareholder approval for a one year extension to complete its merger with the parent company of Truth Social.
What to know: DWAC originally had until today to complete its merger, but federal investigations have caused delays.
- DWAC originally set Tuesday as the deadline for securing a one-year extension, but then adjourned its special shareholder meeting until today (and then, even today, delayed by a few hours).
- During a shareholder call that lasted just a couple of minutes, DWAC didn't explain how it plans to extend until mid-October, although the most likely mechanism would be having the sponsor pay over $2.8 million to exercise an existing option to extend by three months.
- No word yet on if DWAC has secured an extension from the outside investors who committed $1 billion via a so-called PIPE financing.
Big picture: Truth Social says it currently has enough cash to maintain options through April 2023, and that it soon plans to begin generating revenue via advertising.
- Trump recently accused federal securities regulators of trying to hurt DWAC, adding via Truth Social: "In any event, I don't need financing. I'm really rich. Private company anyone???"
- He now has just over four million followers on Truth Social, which has yet to launch its Android app due to a content moderation dispute with Google.
Go deeper: Trump's Truth Social faces new challenge