Donald Trump’s Truth Social Gets Thrown Another Lifeline

Media Donald Trump’s Truth Social Gets Thrown Another Lifeline Derek Baine Contributor Opinions expressed by Forbes Contributors are their own. I am Media Forecasting Experts Managing Director, 30 years experience. Following New! Follow this author to stay notified about their latest stories.

Got it! Sep 10, 2022, 02:34pm EDT | New! Click on the conversation bubble to join the conversation Got it! Share to Facebook Share to Twitter Share to Linkedin Photo by Chip Somodevilla/Getty Images. Getty Images Investors seem amazingly bullish on the Special Purpose Acquisition Company (SPAC) called Digital World Acquisition Corp. (DWAC.

O) and their ability to merge with Trump Media & Technology Group (TMTG), the owner of Truth Social. This is despite the fact that there are three investigations into the company and it’s been unable to get a shareholder quorum allowing it to delay closing for up to a year . The three investigations are from the U.

S. Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority, as well as federal prosecutors. These queries forced the company to ask shareholders to allow it a one year extension to close the deal.

Without one, the company would have been forced to liquidate on 9/8, returning $10. 20/share to investors. When 65% of investors didn’t approve the extension by the 9/6 deadline, the company tried for a Hail Mary on 9/6, asking shareholders to approve up to four three-month extension in exchange for a small cash payment of $2.

875 million per quarter, which works out to $0. 10 per share. It worked! Although the company still was not able to get a quorum from shareholders to get the four extensions, it did change its governing documents to allow for two three-month extensions.

On September 8, Digital World Acquisition Corp. issued a promissory note to ARC Global Investments II LLC , the sponsor of the company in connection with the extension of the termination date for its business combination with TMTG for the initial three month period (and presumably any other extensions). The note is convertible into new shares at $10/share.

The company also moved its special meeting again, from September 8 to October 10, hoping to achieve a quorum from shareholders to allow for four three-month extensions. Shares in DWAC popped 2. 8% to $24.

Although they are trading at just a fraction of their 52-week high of $175/share set intraday on October 22, 2021, they are trading at more than double the liquidation value if the merger doesn’t go through. MORE FOR YOU How To Become A Translator CNN’s John Berman: Arizona ‘Sham Audit’ Proves Donald Trump ‘Even Bigger Loser Than The First Time’ ‘Cut Him Off, Cut Him Off Now!’ Newsmax Anchor Ends Interview When Guest Criticizes Donald Trump Devin Nunes, chief executive officer of Truth Social, speaks during the Conservative Political . .

. [+] Action Conference (CPAC) in Dallas, Texas, US, on Friday, Aug. 5, 2022.

The Conservative Political Action Conference launched in 1974 brings together conservative organizations, elected leaders, and activists. Photographer: Dylan Hollingsworth/Bloomberg © 2022 Bloomberg Finance LP Derek Baine Editorial Standards Print Reprints & Permissions.