logo
Digital World (DWAC) Secures Extension to September 2023
by Nicholas Alan Clayton on 2022-11-25 at 7:31am

Digital World (NASDAQ:DWAC) announced late Wednesday that its shareholders have approved amending its charter to allow for automatic three-month extensions of its transaction deadline until September 8, 2023.

This brings to close a long drama during which Digital World adjourned the vote without concluding business six times at different meetings in September, October and November. The issue appeared to primarily be one of low turnout from retail investors unfamiliar with how to vote or unaware they were still the holder of record.

Institutional ownership in the SPAC has ticked up slightly to 9.2% from 7.2% around the last vote attempt on November 3, but the stock remains overwhelmingly retail-owned. Nonetheless, the sixth time was the charm with Digital World reporting 66% of shares of record participated in this vote, 98% of which approved the extension.

With this extension in hand, Digital World can now focus on negotiations with the investors in the deal’s $1 billion PIPE. The SPAC originally announced its buzzy combination with Trump Media and Technology Group on October 20, 2021, and the outside date for PIPE investors passed on September 20.

Since then, investors representing $138.5 million of this amount have hit the exits, and remaining PIPE investors been reportedly seeking to renegotiate terms.

Some pressure from other outside factors weighing on the deal appear to be lifting. Digital World has been on a steady slide since February after hitting eye-watering highs above $100 at times after its announcement. But, it has been rising over the past week and neared, if not quite eclipsed, its recent September highs, closing at $23.28 on Wednesday.

The announcement that former president and current TMTG Chairman Donald Trump is running for president is the big shoe that has dropped in between the last adjournment and this successful extension. Republicans also appear to have failed to reclaim Congress in the midterms during that period.

That event appeared to be at the top of mind for retail traders. Digital World trading volume topped 33 million on the day before the midterms and 23 million the day of.

Another factor that will likely continue to play off the stock is the ongoing “will he/won’t he” around Trump rejoining his massive following on Twitter. Since buying out Twitter, billionaire Elon Musk has lifted Trump’s ban, but his return to the more established social media platform would undercut the exclusivity of the Trump show over at TMTG.

As for Digital World, this extension means that that the show will go on, with the deals’ initial S-4 under review by the SEC already since May 15.

 

Recent Posts
by Nicholas Alan Clayton on 2024-10-07 at 5:48pm

Launch Two Acquisition Corp. announced the pricing of its $200 million IPO and its units are expected to begin trading on the Nasdaq under the symbol “LPBBU”, Tuesday, October 8, 2024. The new SPAC’s primary search focus will be on technology and software infrastructure companies whose products and services target financial services, real estate and...

by Nicholas Alan Clayton on 2024-10-07 at 12:34pm

Oaktree III Life Sciences (NASDAQ:OACCU) has filed for a $175 million SPAC with some of the most aggressively team-friendly terms seen so far in the second half of 2024. The new SPAC’s units contain 1/5 warrants and the trust is not set to be overfunded. Only the warrantless Cantor Equity Partners (NASDAQ:CEP) has IPO’d so...

by Nicholas Alan Clayton on 2024-10-07 at 8:25am

At the SPAC of Dawn SPACs are set to have a sleepy start to their post-Rosh Hashanah week with no votes on the docket until Wednesday. Three SPACs are to hold extension votes that day and Clover Leaf (OTC:CLOE) will try again to close its combination with Kustom Entertainment after several adjournments on Friday. In...

by Kristi Marvin on 2024-10-05 at 10:00am

Terms Tracker for the Week Ending October 4, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. This week was much, much heavier on the S-1 filings. There were five new SPACs filed along with six amended S-1 registration statements making good...

by Nicholas Alan Clayton on 2024-10-04 at 12:20pm

Willow Lane (NASDAQ:WLACU) has filed for a $110 million SPAC to be the latest repeat SPAC team returning to the market with the help of underwriter BTIG. BTIG is, in fact, leading recent underwriter activity with four new SPACs filed since the August 1, while no other firm has been left lead for more than...

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved