Digital World Acquisition Corp.’s shareholders failed to provide the vote of confidence for the company needed to extend its existence for 12 months, possibly torpedoing the planned merger with the Trump Media & Technology Group, Reuters reports.
DWAC is a so-called “blank check acquisition firm,” which exists to essentially fund a new or existing business through a merger agreement. Trump Media’s proposed merger with DWAC would have infused $1.6 billion into the company, which does little more manage the operation of a floundering right-wing social media platform that censors users.
DWAC needs 65% of shares to vote to extend its existence–ostensibly to keep the organization alive for a merger with Trump Media–in an endorsement of the plan. They got 40%. DWAC directors pushed back another vote to October 10th.