By combining with a blank check company called Digital World Acquisition Corp., Donald Trump's social media company Truth Social has received U.S. regulatory approval to go public.
For the beleaguered deal, this is a huge step forward, but it also comes one day after a step backwards.
The U.S. Securities & Exchange Commission approved its registration statement, according to DWAC, and will soon release a shareholder vote date.
Shares increased by almost 15%, giving DWAC a market cap of roughly $1.86 billion.
Patrick Orlando, the former CEO and current director of DWAC, expressed a desire for additional compensation… which, puts at risk the ability to consummate the Truth Social merger promptly, or at all, according to a disclosure by the company earlier this week.
The founder shares of DWAC are controlled by Orlando, who also owns 14.8% of the company's outstanding shares. He might be able to scuttle the agreement if he opposed the merger or even just objected to amendments.
