The shell company seeking to merge with former President Donald Trump’s social media company announced late Wednesday that it had postponed a crucial meeting of shareholders scheduled for Thursday, at which it hoped to announce that investors had agreed to give it more time to complete its long-delayed deal.
The vote to delay the liquidation date comes after Digital World reached a settlement with the Securities and Exchange Commission on July 20 to resolve an investigation into events preceding the original merger announcement. Digital World’s settlement requires it to pay a penalty of $18 million once the merger is completed and revise some of its filings to comply with federal securities laws.
If the Digital World merger is completed, it will provide Trump Media, the parent company of Truth Social, with a badly needed cash infusion. At its peak, Digital World’s stock traded at around $97 a share, but the delay sapped much of that early investor euphoria. Still, at $17 a share, it is trading significantly above its roughly $10-a-share liquidation value.