It’s been a rollercoaster ride over the past week for special purpose acquisition company (SPAC) Digital World Acquisition Corp (NASDAQ:DWAC), the blank check set to bring Trump Media and Technology Group public via a highly contentious reverse merger. Ahead of the initial vote on Tuesday, shares of DWAC stock surged above $25 per share. On Tuesday, shares plummeted as the vote on the merger was delayed due to the meeting being adjourned to provide shareholders with more time to vote.
Shares of DWAC stock are currently rallying toward the $24 level, surging 4% on bullish expectations. Today is the deadline for this vote to go through. And it appears many on social media believe word has spread and enough votes will be found to pass this merger.
This positive sentiment comes amid reports that today’s meeting has been adjourned for three hours, to allow more votes to be counted. Whether that means something positive will come of this meeting or not is unclear. However, the market appears to be viewing these events positively.
Let’s dive into what investors should make of this high-profile merger.
Will DWAC Stock Rally or Plunge?
Much is riding on today’s vote. The ability for Truth Social to receive $1.3 billion in cash from the initial public offering (IPO) rests in the hands of shareholders. For most investors, it’s in their best interests to vote in favor of the deal. Accordingly, it’s easy to understand why many believe this deal will go through.
That said, the majority of stockholders in this deal aren’t institutional investors. Accordingly, rounding up thousands or millions of small shareholders to cast ballots isn’t an easy task. It will certainly be interesting to see whether enough shareholders show up to mark their tally today.
The requirement for the merger to be accepted is for 65% of shareholders to vote in favor. Large shareholders have already noted their support. But again, the future of this merger lies in the hands of individuals with varying levels of investing experience.
The uncertainty around this merger is palpable. I, for one, will be watching closely. However, this stock is likely to trade like an options contract over the next few days. Accordingly, those who don’t like volatility may want to steer clear.
On the date of publication, Chris MacDonald did not have (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.