Benzinga - by Bibhu Pattnaik, Benzinga Staff Writer.
With the business world watching closely, a pivotal merger deadline approaches for the company aiming to combine with the parent of Truth Social.
What Happened: The spotlight is on Digital World Acquisition Corp. (NASDAQ: DWAC) and Trump Media and Technology Group (TMTG), the parent company of social media platform Truth Social.
The entities made headlines in Oct. 2021 when they declared their merger ambitions. Digital World, conceptualized as a "blank check" entity targeting a tech-firm union, is on the precipice of dissolution if the merger isn't sealed by Sept. 8, The Hill reports.
For Trump Media, the merger is a gateway to its public trading dreams, with the union potentially unlocking funds to the tune of $1 billion.
Also Read: Trump SPAC Deal Nears End Days: Will Sept. 5 Mark Its Demise?
The deadline for the proposed merger was extended in November 2022, courtesy of a shareholder consensus. Yet, the path hasn't been devoid of challenges. The Securities and Exchange Commission (SEC) imposed a penalty on Digital World in July, alleging that it had hidden plans to acquire the Trump company following Digital World's $300 million IPO and not disclose the planned acquisition to stakeholders.
The SEC enforcement director, Gurbir Grewal, stated, “DWAC failed to disclose its discussions with TMTG and failed to disclose a material conflict of interest of its CEO and Chairman.”
In a twist, three Floridian men found themselves under arrest in June, facing insider trading allegations tied to the merger.
Now Read: Donald Trump's Truth Social Might Be Taking A Cue From Elon Musk's X
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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