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 2024-04-22 at 3:01pm

With the passage this weekend of $95 billion in funding for Ukraine, Israel and Taiwan by the House of Representatives, some focus has gone back towards the defense sector, which has generally had a good year as a whole. But, SPACs have not been as active in defense, despite the fact that companies in the...

by Nicholas Alan Clayton on 2024-04-22 at 7:51am

At the SPAC of Dawn As April’s sleepy month for SPAC news continues, there is only one special meeting on the docket to consider a SPAC deal approval, that being today’s vote on Pegasus Digital Mobility‘s (NYSE:PGSS) combination with equipment manufacturer Schmid. Three more SPACs are facing extension votes this week, including Pyrophyte (NYSE:PHYT), whose...

by Kristi Marvin on 2024-04-20 at 11:45am

Terms Tracker for the Week Ending April 19, 2024 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Passover and school spring break starts next week, which most likely means a slowdown in SPAC filing activity. Although Churchill IX is now rumored to...

by Nicholas Alan Clayton on 2024-04-19 at 3:00pm

Despite a week of general pull-backs in the market, fintech firm Ibotta (NYSE:IBTA) nonetheless took the dive and had a good week debuting via a traditional IPO in the choppy waters. The company, which provides app-based consumer cashback discounts on purchases, priced its IPO at $88, above its proposed range of $76 to $84, and...

by Nicholas Alan Clayton on 2024-04-19 at 7:53am

At the SPAC of Dawn Happy Friday! SPACInsider has unveiled new presets on SPAC Performance accessible via the Data drop-down to easily sort for the highest and lowest performing active SPACs and de-SPACs. On the de-SPAC side, Vertiv (NYSE:VRT) continues to be well ahead of the pack, logging a 710% return by share price adjusted...

logo

Copyright © 2023 SPACInsider, Inc. All Rights Reserved