(Reuters) – Digital World Acquisition and former U.S. President Donald Trump’s media company on Wednesday extended the deadline for their merger by over three months to Dec. 31, as they work to close the deal that has been delayed by regulatory scrutiny.
The move comes weeks after blank-check firm DWAC settled fraud charges with the U.S. securities regulator, clearing some of the uncertainty over its merger with Trump Media & Technology Group (TMTG) – the parent company of the Truth Social app.
Shares of the DWAC were 10% higher in extended trading.
The firm, which originally struck a deal to merge with TMTG in October 2021, had in June extended the deadline to Sept. 8.
Its settlement with the U.S. Securities and Exchange Commission was over allegations that DWAC misled investors by failing to disclose in filings that it had formulated a plan to acquire TMTG and was pursuing the acquisition before its initial public offering.
DWAC will pay an $18 million penalty if it closes the merger. The company in July named Eric Swider as its new CEO after ousting Patrick Orlando in March.
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(Reporting by Jaspreet Singh in Bengaluru; Editing by Anil D’Silva)