The shares of Digital World Acquisition (DWAC) are down on Tuesday as investors await an announcement from former President Donald Trump.
Trump is prepared to give a public statement tonight, and many anticipate he will announce his third bid for the presidency of the United States. That would be consistent with past rumors that the previous U.S. President was mulling a candidacy for re-election.
This news comes after a difficult week for the Republican Party. The Republican Party did not perform as well as projected during the midterm elections, failing to significantly increase its influence. This lists various candidates for whom Trump campaigned but who were defeated in respective elections.
Investors in DWAC stock are keeping a careful eye on Trump’s moves. Trump Media & Technology Group, the firm behind Trump’s Truth Social social media network, is slated to merge with DWAC. The platform would become public as a result of this combination.
The route to a merger between the special purpose acquisition company (SPAC) and the social media platform, on the other hand, has not been easy. Several obstacles, including a lack of shareholder approval, have caused the purchase to be delayed several times.
DWAC stock is witnessing strong trade ahead of Trump’s address. A total of 2.3 million shares are being traded. This is somewhat more than the daily average trading volume of roughly 2.2 million shares.
As of Tuesday morning, DWAC stock was down 4.1%.
Following the failure of DWAC shareholders to complete a vote in September, the SPAC’s sponsor, ARC Global Investments, donated around $2.9 million to extend the merger deadline to December 8, according to federal documents. The vote sponsored by DWAC management allows shareholders to extend the deadline until September 8, 2023.
Now that DWAC has financing, the SPAC has until December 8 to gather the necessary votes to approve the extension.
A presidential bid could persuade shareholders to vote to extend the deadline. Otherwise, DWAC has cautioned investors that if the one-year extension is not granted, the business may discontinue operations and liquidate its stock.
According to an SEC filing, DWAC received termination notifications totaling $139 million from private investment in public equity (PIPE) participants between September 19 and September 23. It recorded a $6.2 million loss in the first half of the year in its quarterly report on August 23. And, according to the most recent filing, it is still losing millions of dollars.
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