Digital World Acquisition (NASDAQ:DWAC), the blank-check company behind Donald Trump's Truth Social network, dropped 7.3%, falling for the fourth day in a row as vote for an extension on its deal with Trump's social media company nears next week.
The fall, which comes after a 6.5% drop on Friday, also follows a report from Thursday that one key vendor isn't getting paid for service. RightForge said Truth Social stopped making contractually obligated payments for Web hosting services months ago, leading to payables of $1.6M, Fox Business reported.
DWAC shareholders are scheduled to vote next Tuesday on whether they want to extend the SPAC's ability to do a transaction by another year to Sept. 8, 2023. The voting on the extension is scheduled to start on Tuesday. DWAC has warned previously that if the deal isn't extended, the SPAC may be forced to liquidate.
Earlier this month, DWAC filed to delay the release of its Q2 results. Shares of DWAC have plunged 50% year-to-date as the company has been beset by regulatory probes and potential competition with a Twitter (TWTR) controlled by billionaire Elon Musk, who has said he would allow Trump back on the platform that he was banned from last year.
The DWAC tumble comes as SPAC CF Acquisition Corp. VI (NASDAQ:CFVI), which agreed in December to take YouTube competitor Rumble public and helps Truth Social out with its technology, rose 6.2% in trading on Monday. The gain comes as CFVI shareholders are scheduled to vote on the Rumble deal Sept. 15, with a debut of public trading soon after.
The move in CFVI also comes after pro-Trump social media personality and kickboxer Andrew Tate, who was reportedly banned from Twitter, Instagram, TikTok, YouTube and Facebook last week, said he's joined Rumble.
Dear Readers: We recognize that politics often intersects with the financial news of the day, so we invite you to click here to join the separate political discussion.