DWAC Stock Stumbles Ahead of Merger Extension Vote

  • Digital World Acquisition (DWAC) stock is slipping on merger talk today.
  • The company is seeking a shareholder vote to extend its Truth Social merger window.
  • This extension would push the deadline back to Sept. 8, 2023.
Someone is viewing the Truth Social app in an app store. TMTG and DWAC stock.

Source: Ink Drop / Shutterstock

Digital World Acquisition (NASDAQ:DWAC) stock is sliding on Friday as the company waits for a vote from shareholders to extend its merger window with Truth Social.

Truth Social is the social media company created by former President Donald Trump’s Trump Media & Technology Group. A merger with Digital World Acquisition would take the platform public. However, the window for that merger is closing.

Digital World Acquisition is asking shareholders to vote in favor of extending that window to Sept. 8, 2023. All of this comes as legal trouble continues to surround the special purpose acquisition company (SPAC) merger.

The latest complication? A recent FBI raid of Trump’s Mar-a-Lago mansion. There’s also still an U.S. Securities and Exchange Commission (SEC) investigation into whether a merger agreement was made before Digital World Acquisition actually went public, violating regulations.

It’s worth mentioning that Truth Social is still a fairly new social media platform as well. Truth officially launched in May and was created after Twitter (NYSE:TWTR) banned the former president. Truth Social has about 2 million monthly active users compared to Twitter’s 300 million.

All told, investors will want to be careful about taking any stakes in DWAC stock right now. The current legal trouble surrounding the company makes it a risky investment ahead of its potential merger.

DWAC stock is down 1% as of Friday morning.

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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


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