Trump SPAC has another setback, delays earnings report

The social media app is developed by Trump Media and Technology Group (TMTG).

Rafael Henrique | Light Rocket | Getty Images

Digital World Acquisition Group, the special-purpose acquisition company that plans to merge with Trump Media and Technology Group and making it public, is asking for an extension of its earnings report, according to a regulatory filing Tuesday.

In a filing with the Securities and Exchange Commission, DWAC said it expects to report within the five-day grace period from the required filing date. Publicly traded companies must report their earnings no later than 35 days after a quarter is completed.

DWAC said it had net losses of approximately $4.7 million and $6.5 million for the three-month and six-month periods ended June 30, respectively. It said the amounts are still under review and may differ from the reported numbers.

Trump Media owns Truth Social, a social network aiming to rival Twitter, which the then-president banned in January 2021 for his tweets as hundreds of his supporters stormed the U.S. Capitol in a failed attempt to confirm Joe Biden’s election. by blocking Congress. Trump Media’s CEO is former GOP Representative Devin Nunes, one of Trump’s closest allies in Congress.

The deferred earnings release comes after DWAC also asked shareholders last week to extend the deadline for the Trump Media merger by a year from Sept. 8. A shareholders’ meeting is tentatively scheduled for September 6.

DWAC did not immediately respond to a request for comment.

Federal prosecutors and the SEC have sued DWAC as part of its investigation into the merger that would take Trump’s regular public and potentially give access to billions of dollars in capital. DWAC had previously warned that investigations could jeopardize the deal.

Trump has not been charged with wrongdoing in connection with the DWAC probe. Still, he faces numerous legal challenges, including a federal criminal investigation into the removal of White House data, a criminal investigation into meddling in the Georgia presidential election process, and an ongoing federal criminal investigation into the January 6, 2021 Capitol riot. .

The New York Times reported that DWAC CEO Patrick Orlando discussed a deal ahead of the SPAC’s first public offering. This may violate securities laws designed to prevent SPACs from planning mergers ahead of IPOs. SPACs, also known as blank check companies, sell stocks before seeking a merger partner.

DWAC’s stock rose about 4% Tuesday afternoon, trading around $31 — dramatically lower than its highs after the Trump deal was announced in October.

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