(LibertySociety.com) – The upcoming merger of Digital World Acquisition Corporation (DWAC), a special purpose acquisition company (SPAC), and Trump Media & Technology Group (TMTG) is shorter on funds after the SPAC announced on Oct. 12 that it’s returning $533 million to investors – something they were entitled to due to the merging companies missing a September 2022 deadline to finalize the merger.
The merger has faced setbacks – yet TMTG believes that the deal will ultimately come to fruition. DWAC raised $1 billion from private investment in public equity (PIPE), which would provide liquidity to TMTG one the companies were one entity.
CEO Devin Nunes said that the termination of the pipeline would allow the completion “of our merger with DWAC as soon as possible.” A spokesperson for TMTG reiterated Nunes’s claim. DWAC still has $293 million from its IPO, which will be added to TMTG’s $22.8 million once the merger is complete.
Some DWAC investors could choose to redeem their investments, which would leave the SPAC with less funds to turn over once the deal closes. DWAC’s CEO also reacted positively to the return of the investors’ money, stating that the cancellations “demonstrated their overall understanding of the closing conditions in the Merger agreement.”
TMTG was created after former President Trump was permanently suspended from Twitter. The company aims to take on Big Tech and protect the free speech of all Americans.
Anti-Trump lawmakers, such as Senator Elizabeth Warren, D-Mass., asked the Securities and Exchange Commission (SEC) to investigate the merger deal for securities violations back in 2021. The SEC eventually did open an investigation and charged a former board member with insider trading.
DWAC also ousted its CEO three months before the board member was charged. The merger was supposed to have been completed by September 2022, but multiple extensions were voted on and approved to allow more time. However, PIPE investors were permitted to cancel their investments if they wished.
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