A company on the verge of merging with Truth Social’s parent company is facing a critical deadline in the coming week to finalize the deal.
Back in October 2021, Digital World Acquisition Corp. (DWAC) and Trump Media and Technology Group (TMTG), the parent company of Truth Social, announced their plans to merge. DWAC, a “blank check” company specifically designed for technology company mergers, must meet the September 8 deadline for the merger or face liquidation.
TMTG is relying on the funds from the acquiring company to go public, and if the merger is successful, it could secure a massive $1 billion in funding.
The original deadline for the merger was extended in November 2022 through a shareholder vote. However, in July, the Securities and Exchange Commission (SEC) fined DWAC for allegedly planning to purchase the Trump company before raising the $300 million in initial public offering (IPO) funds, but failing to disclose the plan to investors as required.
“DWAC neglected to disclose its discussions with TMTG and neglected to reveal a significant conflict of interest involving its CEO and Chairman,” stated SEC enforcement director Gurbir Grewal at the time.
In June, the Justice Department arrested three individuals from Florida on insider trading charges related to the merger.
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