November 30, 2023

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Trump SPAC has another setback, earnings report delay

Trump SPAC has another setback, earnings report delay

The social media app will be developed by Trump Media and Technology Group (TMTG).

Rafael Henrique | Light Rocket | Getty Images

Digital World Acquisition Groupthe special purpose acquisition company that plans to merge with the Trump Media and Technology Group Announcing it publicly, it is requesting an extension to file its earnings report, according to a regulatory filing on Tuesday.

In a filing with the Securities and Exchange Commission, the DWAC said it expects to file a report within the agency’s five-day grace period from the requested filing date. Publicly traded companies are required to report their earnings no later than 35 days after the quarter is completed.

DWAC said it incurred a net loss of about $4.7 million and $6.5 million for the three and six months ended June 30, respectively. She said the amounts are still under review and may differ from the announced figures.

Trump owns Truth Social, a social network aspiring to rival Twitter, which banned the then-president in January 2021 over his tweets while hundreds of his supporters stormed the US Capitol in an unsuccessful attempt to prevent congressional confirmation of Joe Biden’s election. The CEO of Trump Media is former Republican Representative Devin Nunes, one of Trump’s strongest allies in Congress.

The delayed earnings release comes after the DWAC last week also asked shareholders to extend the deadline for a merger with Trump Media by one year from September 8. A shareholder meeting is tentatively scheduled for September 6.

DWAC did not immediately respond to a request for comment.

Federal prosecutors and the SEC have subpoenaed the DWAC as part of its investigations In a merger that would make Trump’s company public and potentially give it access to billions of dollars in capital. The DWAC had earlier warned of those investigations It could jeopardize the deal.

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Trump has not been charged with wrongdoing related to the DWAC investigation. However, he faces countless legal problemsincluding a federal criminal investigation into removing records from the White House, a criminal investigation into interference in the Georgia presidential election process and the ongoing federal criminal investigation of January 6, 2021, the Capitol riots.

The New York Times reported Ann Patrick Orlando, CEO of DWAC, discuss a deal Prior to SPAC’s initial public offering. This would violate securities laws intended to prevent SPACs from planning mergers prior to initial public offerings. SPACs, also known as blank check companies, sell shares before seeking a merger partner.

DWAC stock is up about 4% on Tuesday afternoon, and is trading around $31 — a significant drop from its highs after Trump’s deal was announced in October.