Digital World Acquisition Corp. Announces Adjournment of its Special Meeting of Stockholders to Provide Additional Time to Approve an Extension of its Initial Business Combination Deadline

Rhea-AI Summary

Digital World Acquisition Corp. (DWAC) announced the adjournment of its special stockholders' meeting to September 8, 2022, to vote on an Extension Amendment. This amendment aims to extend the deadline for completing a business combination by up to 12 additional months. Stockholders can vote by phone or internet, with the record date remaining as August 12, 2022. If the amendment is not approved, the sponsor will contribute $2,875,000 to extend the deadline by three months. This action is critical to ensure sufficient time for the company to finalize a business deal.

Positive

• Extension Amendment would provide up to 12 additional months to complete a business combination.
• Sponsor's contribution increases trust account funds from approximately $10.20 to $10.30 per share.

Negative

• The need to adjourn the meeting indicates potential difficulties in garnering stockholder support.

Provides Additional Telephone Access to Facilitate Voting Process Prior to the Adjourned Meeting

Urges All Stockholders to Promptly Vote FOR the Extension Amendment that Will Provide the Company Additional Time to Complete a Business Combination - EVERY VOTE COUNTS!

MIAMI, FL / ACCESSWIRE / September 6, 2022 / Digital World Acquisition Corp. (Nasdaq:DWAC) ("Digital World" or the "Company") today announced that the special meeting of stockholders (the "Special Meeting"), which was originally scheduled for September 6, 2022, is being adjourned to 12:00 p.m. Eastern Time on September 8, 2022.

The Special Meeting is for stockholders to consider amending the Company's amended and restated certificate of incorporation ("Extension Amendment") to extend the period of time for completing a business combination up to four times, each by an additional three months, for an aggregate of 12 additional months (or until September 8, 2023) or such earlier date as determined by the Company's Board of Directors (the "Extension").

The record date for the stockholders' meeting to vote on the Extension remains the close of business on August 12, 2022 (the "Record Date"). Stockholders who have previously submitted their proxy or otherwise voted and who do not want to change their vote need not take any action. Stockholders as of the Record Date can vote, even if they have subsequently sold their shares.

The Company also announced that it has provided a third telephone line to facilitate the voting process for shares held in "street" name. Stockholders can now call (786) 677-4893, in addition to (786) 206-8970, for step-by-step assistance on how to vote. Stockholders can also continue to vote by internet or by phoning the Company's proxy solicitor, Saratoga Proxy Consulting LLC ("Saratoga Proxy"), at (888) 368-0379 or (212) 257-1311. Votes will be accepted up to and during the adjourned meeting.

If stockholders have any questions or need assistance, please call Saratoga Proxy at (888) 368-0379 or (212) 257-1311.

In connection with the adjourned date, the Company has extended the deadline for holders of the Company's Class A common stock issued in the Company's initial public offering to submit their shares for redemption in connection with the Extension to 5:00 p.m. Eastern Time on September 7, 2022. Shareholders who wish to withdraw their previously submitted redemption request may do so prior to the rescheduled meeting by requesting that the transfer agent return such shares.

If the Extension Amendment is not approved by the stockholders by September 8, 2022, ARC Global Investments II, LLC, the Company's sponsor (the "Sponsor"), intends to contribute to the Company's trust account an aggregate amount of $2,875,000, which is equal to $0.10 per share of Class A common stock issued in the Company's initial public offering, to extend the time to consummate an initial business combination for a three-month period, until December 8, 2022. Such contribution would be made as a loan that would not accrue interest and would either be paid upon earlier of consummation of an initial business combination or the company's liquidation, or, at the lender's discretion and subject to certain conditions, converted upon consummation of the initial business combination into additional into units, at a price of $10.00 per unit, identical to the units issued in the Company's private placement that was consummated in connection with the Company's initial public offering. The contribution will increase the pro rata portion of the funds available in the Company's trust account in the event of the consummation of an initial business combination or liquidation from approximately $10.20 per share to approximately $10.30 per share.

SOURCE: Digital World Acquisition Corp.

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FAQ

What is the purpose of Digital World Acquisition Corp's special meeting on September 8, 2022?

The meeting aims to vote on an Extension Amendment to extend the deadline for completing a business combination.

What happens if the Extension Amendment is not approved by stockholders?

If not approved, the sponsor intends to contribute $2,875,000 to extend the deadline for an additional three months.

What is the significance of the Extension Amendment for DWAC stockholders?

It allows for more time to finalize a business combination, potentially impacting the value of their shares.

How many additional months does the Extension Amendment propose to extend the business combination deadline?

The amendment proposes to extend the deadline by up to 12 additional months.

When is the record date for voting on the Extension Amendment?

The record date remains August 12, 2022.