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Trump Spac fails to pay proxy firm despite tough hunt for votes
This is not good news for Trump Media and Technology. Digital World Acquisition, the SPAC that was supposed to merge into TFG's company, incurred a ton of debt soliciting proxies. The proxy solicitation failed and DWC has not paid the proxy solicitor
Link to tweet
https://www.ft.com/content/49ac85be-4c2c-4489-aaf9-999d8ae07314?accessToken=zwAAAYNNNm11kc9JrIW-TCxEidOq-ZmdiuBzFA.MEUCIE32M9RuIwPkJ9FCGP73vaZLhwcvG8dp0I5c_17gWk7OAiEAhYpQTGqld7NOrs-YVWukPosvraWTeX6y9mO0Jr4WvgI&sharetype=gift&token=592a6c40-f04a-4e55-9631-87aead7a5011
Executives behind a blank-cheque company that plans to take Donald Trump’s media business public have failed to pay their proxy solicitors even as they struggle to drum up support for an extension to complete the deal.
Digital World Acquisition Corporation, a special purpose acquisition company set up by Patrick Orlando, has not paid Saratoga Proxy Consulting for its work helping to rally shareholders, according to people familiar with the situation.
DWAC owes the New York-based firm a six-figure sum but Orlando has informed it that there is no money to pay the bill, one of the people said. On Friday, the company announced that it had brought on a new proxy solicitor, Alliance Advisors.
Orlando responded to an email sent by the Financial Times with a screenshot appearing to show a message sent to a DWAC shareholder by TD Ameritrade on September 13 saying voting had closed a week earlier and a link to its latest filing with the Securities and Exchange Commission. Saratoga declined to comment.
DWAC’s failure to pay its proxy solicitors could raise questions about the finances of its backers, including Orlando, who stand to make hundreds of millions of dollars if the deal is completed. If the transaction falls through, investors will receive $10 per share but the sponsors will lose the money they put forward to set up the company.
In May, DWAC warned investors that it faces risks because of Trump’s history of business bankruptcies and said “there can be no assurances that TMTG will not also become bankrupt”.
Digital World Acquisition Corporation, a special purpose acquisition company set up by Patrick Orlando, has not paid Saratoga Proxy Consulting for its work helping to rally shareholders, according to people familiar with the situation.
DWAC owes the New York-based firm a six-figure sum but Orlando has informed it that there is no money to pay the bill, one of the people said. On Friday, the company announced that it had brought on a new proxy solicitor, Alliance Advisors.
Orlando responded to an email sent by the Financial Times with a screenshot appearing to show a message sent to a DWAC shareholder by TD Ameritrade on September 13 saying voting had closed a week earlier and a link to its latest filing with the Securities and Exchange Commission. Saratoga declined to comment.
DWAC’s failure to pay its proxy solicitors could raise questions about the finances of its backers, including Orlando, who stand to make hundreds of millions of dollars if the deal is completed. If the transaction falls through, investors will receive $10 per share but the sponsors will lose the money they put forward to set up the company.
In May, DWAC warned investors that it faces risks because of Trump’s history of business bankruptcies and said “there can be no assurances that TMTG will not also become bankrupt”.
TFG's media company was supposed to end up with between $280 million and $1.3 billion. I am glad that this deal fell through
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