Nasdaq threatens to delist the Trump SPAC from the inventory market

Digital World Acquisition Corp., the blank-check agency looking for to merge with former President Donald Trump’s media enterprise that owns the Reality Social app, has acquired a delisting discover from the Nasdaq.

In a press launch Wednesday, Digital World stated it “acquired an anticipated letter” from the inventory market as a result of hasn’t filed a quarterly report for the interval ending on March 31. The letter doesn’t imply the corporate will probably be delisted, however its inventory may disappear from the Nasdaq trade if it doesn’t get its act collectively quickly.

“The Nasdaq notification letter has no rapid impact on the itemizing or buying and selling of the corporate’s securities on the Nasdaq,” the corporate stated. It has till July 24 to submit a plan to regain compliance of the Nasdaq’s guidelines.

Nevertheless, the corporate stated there’s “no assurance” that Nasdaq will settle for its plan or that the corporate “will be capable of regain compliance inside any extension interval granted by Nasdaq.”

Shares of DWAC have been flat Thursday.

DWAC introduced plans in October 2021 to amass Trump Media & Expertise Group, proprietor of the Reality Social app, a would-be rival to Twitter. The previous president is the chairman and a significant shareholder of TMTG. However the deal, between DWAC and TMTG has not come to fruition, as a shareholder vote on the transaction had been delayed a number of occasions earlier than it in the end failed in September 2022.

The controversial merger has additionally been stalled by authorized scrutiny. The Justice Division is investigating the acquisition, along with the SEC.

In late June, Digital World disclosed its board members had acquired subpoenas from a federal grand jury within the Southern District of New York associated to due diligence relating to the deal.

Digital World has stated the federal probes have blocked the power to get the take care of TMTG consummated. Regardless of shareholders’ rejection of the TMTG deal, Digital World stated late final yr it has been capable of purchase extra time as a result of its sponsor, ARC World Investments II, deposited almost $3 million into the corporate’s belief account to train an choice to unilaterally prolong the merger settlement.

If that hadn’t occurred, the complete deal may have unraveled, forcing Digital World to return the roughly $300 million it has raised. That cash is meant to fund the merger with Reality Social proprietor TMTG. A liquidation would have additionally threatened the extra $1 billion the Trump media firm has raised.