Deadbeat SPAC: Donald Trump's Social Network Isn't Paying Its Bills. Is This The Final Setback?

Zinger Key Points
  • DWAC CEO Patrick Orlando told Saratoga Proxy Consulting it did not have money to pay the consulting bill.
  • The SPAC can extend its deadline to March 8, 2023 without shareholder approval.
Deadbeat SPAC: Donald Trump's Social Network Isn't Paying Its Bills. Is This The Final Setback?

A SPAC set to take former President Donald Trump’s new media company public could be facing another setback. Here’s the latest.

What Happened: A shareholder vote for SPAC Digital World Acquisition Corporation DWAC was delayed to October after failing to generate enough votes to extend the vote on a merger with Trump Media & Technology Group.

The SPAC failed to pay proxy firm Saratoga Proxy Consulting which helped solicit votes from public shareholders. The amount owed is said to be six figures.

Digital World Acquisition Corporation CEO Patrick Orlando told Saratoga Proxy Consulting it did not have money to pay the consulting bill, according to a report from the Financial Times.

A new proxy firm called Alliance Advisors has been hired to help share information on the merger vote, now delayed until October.

The SPAC is actively seeking shareholder approval to extend the merger vote date for one year to September 2023.

Around 40% of public shareholders of Digital World Acquisition voted in favor of the merger vote extension. A 65% vote in favor is required to approve the extension of the merger deadline.

The current shareholder deadline to vote on the merger vote extension is Oct. 10, 2022.

The SPAC can extend its deadline to March 8, 2023 without shareholder approval. If the merger extension to September 2023 is not approved, the company would have to complete the merger by March 8, 2023 or liquidate its assets.

Related Link: Donald Trump Themed Alternative Investments To DWAC: 3 Stocks And 1 ETF To Watch 

Why It’s Important: The latest report of the SPAC having no money available to pay the proxy firm comes on the heels of another company linked to providing work for Trump Media & Technology Group not being paid.

Truth Social, a social media platform owned by Trump Media & Technology Group, stopped making payments to its web-hosting provider. Fox Business Network reported that RightForge claimed Truth Social was $1.6 million behind in payments to the company.

Among the risk factors in the SPAC merger agreement were mentions of the previous history of bankruptcies by companies linked to Trump. The SPAC said, “there can be no assurances that TMTG will not also become bankrupt.”

An investigation in 2016 by USA Today highlighted numerous lawsuits filed against Trump and his company over not being paid for their work. The report also found violations of the Fair Labor Standards Act against Trump-affiliated companies.

Trump brushed off the report at the time.

“Let’s say that they do a job that’s not good, or a job that they didn’t finish, or a job that was way late. I’ll deduct from their contract, absolutely,” Trump said. “That’s what the country should be doing.”

Truth Social is currently available on Apple Inc AAPL devices via the iOS store. The app saw a surge in downloads after the FBI raid at Mar-a-Lago. The app is taking pre-orders for devices that use the Android operating system, owned by Alphabet Inc GOOGGOOGL. Google has denied the company from being added over concerns of a lack of content moderation.

The report also comes as Digital World Acquisition executives like Orlando could make hundreds of millions of dollars if the merger goes through and face potential losses if the merger is not approved.

DWAC Price Action: Digital World Acquisition shares are down 3.2% to $22.67 on Monday, versus a 52-week range of $9.84 to $175.

Photo: Courtesy of Gage Skidmore on flickr

Posted In: Donald TrumpPatrick OrlandoPresident Donald TrumpSPACSPACsTrump Media & Technology GroupTRUTH SocialM&APoliticsSmall CapGeneral

11 Best Black Friday Deals on Amazon

11 Best Black Friday Deals on Amazon

The best Black Friday deals from Amazon are still coming hard and fast because the holiday is not yet upon us and the mega-retailer prefers to keep consumers on the hook for as long as possible—spending as much money as possible. 

To that end, here are some of the best Black Friday deals from Amazon that you might want to consider today.

Calphalon 10-Piece Pots and Pans Set

Regular Price: $172

Sale Price: $138.88

Calphalon’s 10-Piece Pots and Pans Set is designed with stainless steel, stay-cool handles along with pour spouts. The nonstick surface is PFOA-free and built with hard-anodized aluminum that is both durable and conducts heat extremely well. The set includes 2 fry pans, a sauce pan with cover, saute pan with cover and large stock pot with cover.

Apple AirPods 2nd Generation

Regular Price: $144

Sale Price: $85.49

The 2nd Generation AirPods from Apple connect to all Apple devices and give you an enhanced listening experience. Plus, they come with a case that keeps them safe and allows you to charge them in a secure environment. With over 24 hours of battery life, access to Siri and easy setup, you can start listening to your favorite tunes or podcasts today.

Adidas Ultraboost 21 Running Shoes

Regular Price: $129.98

Sale Price: $89.98

The Adidas Women’s Ultraboost 21 running shoe is perfect for anyone who likes a short run, maybe a 5K, half marathon or more. Coming in several colors and styles, you can slip these shoes on, enjoy the cushioned outsole, sink into the supple insole and secure laces.

Ninja AF101 Air Fryer

Regular Price: $129.99

Sale Price: $97.83

The Ninja AF101 Air Fryer allows you to crisp, roast, reheat and even dehydrate food products faster and cheaper than ever before. It has a 4-quart capacity and offers a wide temperature range along with several time settings so that you can customize each dish to your needs. Plus, all the parts are dishwasher safe.

Beats Solo3 Wireless On-Ear Headphones

Regular Price: $199.95

Sale Price: $99

Beats by Dr. Dre are among the best headphones on the market, and the Solo3 Wireless On-Ear Headphones include the Apple W1 chip, Class 1 Bluetooth and 40 hours of battery time. These headphones even have a built-in microphone and offer an adjustable fit so that you can be comfortable whether you’re listening to an Android or iOS device.

Hoover Power Scrub Deluxe Carpet Cleaner

Regular Price: $198.98

Sale Price: $175.98

The Hoover Power Scrub Deluxe Carpet Cleaner allows you to keep your home spotless and clean up after your pets. The cleaner comes with the Hoover Paws and Claws Deep shampoo and a storage mat to keep the floor dry once it’s put away.

LG CordZero Auto Empty Cordless Stick Vacuum

Regular Price: $999.00

Sale Price: $851.71

The LG CordZero Auto Empty Cordless Stick Vacuum and Wet Mop All in One Tower is designed to work in homes with several pets or children and clean up all the messes that life brings. The battery lasts up to 2 hours, and there’s an extra removable battery that gives you even more cleaning time and power.

Breville Fresh and Furious Blender

Regular Price: $278.60

Sale Price: $199.95

Breville, a top name in blenders and juicers, offers the Fresh and Furious Blender, featuring 50-ounce capacity, Vac Q technology, pre-programmed cycles, LCD display and lid with pull ring. With the Fresh and Furious Blender, you can make everything from a smoothie to a soup and everything in between.

Hot Tools Professional 2000 Turbo Ionic Hair Dryer

Regular Price: $89.99

Sale Price: $55.63

The Hot Tools Professional 2000 Turbo Ionic Hair Dryer is designed for professional use, but it works perfectly in the home. With 1875 watts of power, 6 heat and speed settings and a lightweight design, you can easily style your hair and utilize the diffuser, cut back on the frizz and stretch the 8 ft cord for maximum functionality.

Columbia Heavenly Long Hooded Jacket

Regular Price: $160

Sale Price: $97.38

The Heavenly Long Hooded Jacket from Columbia is designed to be light for everyday use, but it’s heavy enough to protect you from the cold. The plush fleece lining, security pocket, water resistant fabric, 2-way zipper, and zippered hand pockets make the jacket both protective and functional.

ConAir InfinitiPro Hair Dryer

Regular Price: $49.99

Sale Price: $29.99

ConAir is one of the biggest names in hair and beauty, and the InfinitPro is an 1875 watt hair dryer designed for professionals with ceramic technology. The dryer comes with a diffuser and concentrator, and it allows you to blow out your hair just the way they would at the salon.

Deals the Experts Are Hoping For

Experts believe that Amazon’s Black Friday sale could linger for quite some time. It all started with the Prime Early Access sale on October 11 and 12. Previously, Amazon has offered the “Epic Deals” sale that ran through late October. 

This is to say that any sale could come up at any time. 

Even so, those monitoring Amazon are looking forward to a few potential deals, including:

  • Apple Watch
  • AirPods (any generation)
  • MacBook Pro
  • Large, underpriced TVs
  • Amazon Echo
  • More small home appliances (Dyson or Shark vacuums, Instant Pots, etc.) 

While these predictions are based on last year’s Amazon Black Friday Sale, it’s important to remember that most Black Friday sales are fairly consistent and push the products that are most likely to sell.

 

Featured image sourced from Shutterstock

Posted In: Partner ContentGeneral