© Reuters. The Truth social network logo is seen displayed behind a woman holding a smartphone in this picture illustration taken February 21, 2022. REUTERS/Dado Ruvic/Illustration
(Reuters) – The blank-check acquisition firm that agreed to merge with former U.S. President Donald Trump’s social media company failed on Tuesday to secure enough shareholder support for a one-year extension to complete the deal.
Digital World Acquisition Corp Chief Executive Patrick Orlando told a special meeting of his shareholders that he would push back the deadline for a vote on extending the life of the special purpose acquisition company (SPAC) by 12 months to noon on Thursday.
Digital World needs 65% of its shareholders to vote in favor of the proposal. Far fewer Digital World shareholders than those required have voted in favor, Reuters reported on Monday.
Digital World is set to liquidate on Thursday and return the money it raised in its September 2021 initial public offering to shareholders unless action is taken.