Digital World Acquisition Corp. (NASDAQ: DWAC), the blank-check company that has a deal to take former President Trump’s media company public, has changed its listed address from a WeWork location in Miami, Florida, to a UPS store in the same city.
The Financial Times reported that Digital World also has agreed to rent office space from a business “affiliated” with Digital World CEO Patrick Orlando for $15,000 a month. The UPS mailbox likely costs around $50 a month.
Investors in Digital World’s SPAC merger with Trump Media and Technology Group have withdrawn $138.5 million from the funds raised by a $1 billion private investment in public equity (PIPE) offering last December. One investor told CNBC that it had pulled its investment due to the “many legal obstacles facing the company.”
Trump’s Truth Social app has also failed to live up to investors’ expectations. While the former U.S. president once counted more than 80 million followers on his Twitter account, he has been able to gin up just 4.1 million for Truth Social. In August, the Google Play app store banned the Truth Social app, citing posts that ran afoul of the store’s posting guidelines. The app is still available on Apple’s App Store for iPhone users.
Digital World already has suspended a shareholder meeting originally set for October 10 after it failed to gain support from 65% of shareholders to extend the deadline for completing a deal. CEO Orlando kicked in $2.8 million to keep the company afloat until December while continuing to seek shareholder approval for the extension.
Earlier this month, the Financial Times reported that Digital World had not paid its proxy advisory company, Saratoga Proxy Consulting, for the company’s work to persuade shareholders to extend the time to complete the SPAC IPO. Digital World reportedly has signed on a new proxy advisor, Alliance Advisors, even though it owes Saratoga a reported six-figure fee.
If Digital World cannot get an extension, it must return the money raised by the PIPE offering. The $293 million that Digital World put into Trump Media would be lost.
Investors reacted to Monday’s reports by boosting Digital World’s share price by more than 6% to close the day at $17.52. The stock’s 52-week trading range is $9.84 to $175.00. Shares were down about 1.2% in Tuesday’s premarket session at $17.31.
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