DWAC delays earnings report; deadline to complete business combination may get pushed to Sept 8, 2023

Digital World Acquisition Corp. is a blank check company formed for the purpose of effecting a merger, asset acquisition, stock purchase or similar business combination with one or more businesses.

DWAC delays earnings report; deadline to complete business combination may get pushed to Sept 8, 2023
Typically, a blank check company does not have a business plan for generating income. (Image: Pixabay)

Digital World Acquisition Corp (DWAC) stock has remained a favorite among retail investors since the stock got listed in September 2021. Reportedly, a planned merger of Digital World Acquisition Corp with Trump Media was announced last year which led to a jump in the stock price. Listed on Nasdaq, the DWAC stock price zoomed from the levels around $10 to as high as $94 in quick time and had even touched an intraday-day high of $175. Since March 2022, the DWAC stock price is falling and is around $30 as of August 17.

In the latest development, on August 16, Digital World Acquisition Corp. Through a US Sec filing informed that the company was unable to file its Form 10-Q for the quarterly period ended June 30, 2022, within the prescribed time period without unreasonable effort or expense because additional time is needed to prepare the financial statements for the quarterly period ended June 30, 2022. The Registrant anticipates that it will file its Form 10-Q within the five-day grace period provided by Rule 12b-25 of the Securities Exchange Act of 1934, as amended.

Earlier, Digital World Acquisition Corp. on August 8 announced that its board of directors has set the close of business on August 12, 2022 as the record date for Digital World’s special meeting of its stockholders to be held to approve a proposal to amend Digital World’s charter to extend the date by which it has to complete a business combination from September 8, 2022, to September 8, 2023. The deadline for completing the deal with Trump Media may have been pushed to September 2023. Additionally, Digital World’s board of directors has selected September 6, 2022, as the tentative meeting date for the Special Meeting.

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Digital World’s stockholders of record at the close of business on the Record Date will be entitled to vote the shares of common stock of Digital World owned by them at the Special Meeting. A proxy statement relating to the Special Meeting has not been finalized or declared effective. Once final, a definitive proxy statement will be mailed together with a proxy card to Digital World and will include the date, time, and location of the Special Meeting.

Digital World Acquisition Corp. is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. While the Company may pursue an initial business combination target in any business or industry, it intends to focus on middle market and emerging growth technology-focused companies in the Americas, in SaaS and Technology or Fintech and Financial Services.

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Typically, a blank check company does not have a business plan for generating income or undergoing any operations are concerned. They are a kind of special purpose acquisition company (SPAC) whose objective is to raise funds so as to acquire other businesses within a stipulated time.

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