Digital World Acquisition, a blank-check company in talks to merge with Donald Trump’s media group, has once again delayed the deadline to complete their merger.
New Deadline Set for June 8
The deadline for completing the initial business combination between Digital World and Trump Media & Technology Group, the operator of Truth Social platform, has been extended to June 8. This is an extension from the previous deadline of March 8.
Extension Details
Legal Challenges in the Mix
However, Digital World also revealed legal challenges that could potentially impede the completion of the merger. The company has filed a lawsuit against former CEO Patrick Orlando’s investment firm ARC over a stock conversion ratio dispute expected post-merger. ARC retaliated by filing a lawsuit against Digital World, seeking an injunction to halt the merger until the stock conversion ratio is adjusted.
If ARC’s claims prevail in court, Digital World may have to issue additional stock to Class B shareholders, diminishing the ownership percentage of the company’s public stockholders after the merger.
Additionally, United Atlantic Ventures, an investment firm linked to TMTG co-founders, has lodged a complaint in the Delaware Court of Chancery seeking legal remedy concerning Digital World’s issuance and ownership of stock in Trump’s media enterprise.