A deal for Truth Social to merge with a Special Purpose Acquisition Company faces collapse unless shareholders within the blank-check vehicle vote on Tuesday to increase the agreement, The Post has learned.
Patrick Orlando, the CEO of Digital World Acquisition, needs 65% of shareholders in his SPAC to conform to the extension, he said Thursday in an interview with IPO Edge.
“We’re looking forward to a really successful vote,” Orlando told IPO Edge Editor-in-Chief John Jannarone in an interview Thursday.
The vote will probably be held Tuesday.
Orlando launched the SPAC last September and a month later, announced the deal to merge with Truth Social, the right-leaning social media platform launched by former President Donald Trump.
Digital World’s stock skyrocketed after the Truth Social deal was announced, soaring to $100 a share as recently as six months ago, well above its $10 IPO price — when it didn’t own any firms.
Patrick Orlando, the CEO of Digital World Acquisition, said an SEC probe is the cause for the deal being delayed.DWAC
The Securities and Exchange Commission launched an investigation into whether Digital World shareholders possibly had advance knowledge of what it was buying before listing its shares — a violation of securities laws.
Orlando said the probe is the cause for the deal being delayed. The stock traded at $23.62 on Friday.
The Post reached out to the SEC for an update on its investigation, and it declined comment.
Trump’s Truth Social has also been recently accused of stiffing a vendor and losing key employees.GC Images
This week it was reported that Truth Social, which has about 4 million lively users, was banned from being downloaded on the Google Play Store because the corporate doesn’t properly moderate its content.
Orlando said the Google Play store was not vital for Truth Social’s success.
“I’m not an Android user so I’m undecided if Android users can get it another way. I do know many those that use it on the net. I take advantage of Truth Social on the net. I’m very blissful with it, so you recognize, not having the Google Store hasn’t impeded me in any way from using the platform.”