Acquisition of the digital world (NASDAQ: DWAC), the blank check company behind Donald Trump’s Truth Social network, fell 7.3%falling for the fourth day in a row by voting to extend his deal with Trump social media company is getting closer next week.
The fall, which occurs after a 6.5% decrease Friday also follows a report on Thursday that a key supplier is not being paid for service. RightForge said Truth Social stopped making contract payments for web hosting services months ago, resulting in $1.6 million in debt, Fox Business reported.
DWAC shareholders are due to vote next Tuesday on whether they want to extend SPAC’s ability to transact for one year through Sept. 8, 2023. Voting on the extension is expected to begin on Tuesday. DWAC previously warned that if the deal is not extended, SPAC could be forced into liquidation.
Earlier this month, DWAC asked to delay the release of its second quarter results. Shares of DWAC have fallen 50% since the start of the year as the company has been plagued by regulatory investigations and potential competition with a Twitter (TWTR) controlled by billionaire Elon Musk, who has said he would get Trump back to the platform he was on. banned since last year.
DWAC’s downfall comes as SPAC CF Acquisition Corp. IV (NASDAQ: CFVI), which in December agreed to take YouTube competitor Rumble public and help Truth Social with its technology, increased by 6.2% in Monday’s talks. The gain comes as CFVI shareholders are due to vote on the Rumble deal on September 15, with public trading to begin soon after.
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