Trump SPAC Digital World reportedly unable to pay proxy solicitation firm (NASDAQ:DWAC)

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Trump SPAC Digital World Acquisition Corp (NASDAQ: DWAC) allegedly failed to pay the company that solicited votes for its deal to take social media company and app Truth from Trump social public.

Digital World Acquisition (DWAC) allegedly failed to pay proxy solicitation firm Saratoga Proxy Consulting for its work helping to get shareholders to vote to approve combining SPAC with Trump’s Media & Technology group, according to a report by the Financial Times on Saturday, which quoted people familiar.

DWAC owes the company a six-figure amount, although DWAC CEO Patrick Orlando told the New York-based proxy firm that it had no money to pay for its services, according to the report. On Friday, DWAC announced it had hired proxy attorney Alliance Advisors, which it agreed to pay a $10,000 fee, according to a regulatory filing.

The report comes as DWAC struggled to secure the 65% shareholders needed to approve the combination with Trump’s media company and postponed a shareholder vote until October 10 as it tries to secure more votes. To date, only around 40% of holders have voted in favor of the transaction, according to the FT.

DWAC has an extra lifeline to survive after the SPAC sponsor dropped $2.88 million to extend the time the company needs to complete its deal with Trump’s social media company by three months until to December 8. This is the first of two three-month extensions under the company’s management. documents. DWAC previously warned that if the deal is not extended, SPAC could be forced into liquidation.

This isn’t the first report on DWAC SPAC struggling with its finances. In August, Fox Business reported that DWAC failed to pay a web hosting company called RightForge for its services.

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