Trump SPAC Digital World said to be unable to pay proxy soliciting firm (NASDAQ:DWAC)


Brandon Bell/Getty Images News

Trump SPAC Digital World Acquisition Corp (NASDAQ:DWAC) is to said to have failed to pay the firm that has been soliciting votes for its deal to take Trump’s social media company and app Truth Social public.

Digital World Acquisition (DWAC) is said to have not paid proxy soliciting firm Saratoga Proxy Consulting for its work helping to get shareholders to vote to approve the SPAC’s combination with Trump’s Media & Technology Group, according to a Financial Times report on Saturday, which cited people familiar.

DWAC owes the firm a six-figure amount, though DWAC CEO Patrick Orlando has told the New-York based proxy firm that is has no money to pay for its services, according to the report. On Friday DWAC announced it hired proxy solicitor Alliance Advisors, which it agreed to pay a fee of $10,000, according to a regulatory filing.

The report comes as DWAC has struggled to get the necessary 65% of shareholders needed to approve the combination with Trump’s media company and has adjourned a shareholder vote until Oct. 10 as it attempts to gain more votes. As of now only about 40% of holders have voted in favor of the transaction, according to the FT.

DWAC has an additional lifeline to survive after SPAC’s sponsor deposited $2.88 million to extend the time company needs to complete its deal with Trump’s social media company by three months until Dec. 8. This is the first of two three-month extensions under the company’s governing documents. DWAC has warned previously that if the deal isn’t extended, the SPAC may be forced to liquidate.

This isn’t the first report about DWAC SPAC struggling with its finances. In August Fox Business reported that DWAC had failed to pay a web hosting company called RightForge for its services.

Dear Readers: We recognize that politics often intersects with the financial news of the day, so we invite you to click here to join the separate political discussion.

Leave a Reply

Your email address will not be published.