DWAC potential merger with Truth Social has ... FAILED.

The blank-check acquisition firm that agreed to merge with former U.S. President Donald Trump's social media company failed on Tuesday to secure enough shareholder support for a one-year extension to complete the deal.

Digital World needs 65% of its shareholders to vote in favor of the proposal. Far fewer Digital World shareholders than those required have voted in favor, Reuters reported on Monday.

Digital World is set to liquidate on Thursday and return the money it raised in its September 2021 initial public offering to shareholders unless action is taken.

Also ...

Digital World Acquisition Corp Chief Executive Patrick Orlando told a special meeting of his shareholders that he would push back the deadline for a vote on extending the life of the special purpose acquisition company (SPAC) by 12 months to noon on Thursday.

https://finance.yahoo.com/news/trump-media-deal-suffers-blow-162043540.html

So ...

I don't know if CEO has legal authority to push back the vote. Maybe yes, or maybe it is wishful thinking. Shareholders run the company, not the CEO. But maybe there is some special agreement. I just don't know.

But ...

IF the shareholders have voted "NO" on merging with Truth Social, AND the CEO cannot buy more time, THEN the company WILL LIQUIDATE on Thursday.

Since there is not enough money in the piggy bank to pay all shareholders an amount equal to today's stock price (which is at $20 right now) ... THEN it means the liquidation will be a big loss from here.

I am neither long nor short, and never have been. I said a year ago to WAIT to buy because you never know if "a deal" will work out or not.

For some reason, the shareholders do not want to do the deal. Maybe the shareholders have a lot of anti-Trump people and will never agree. I don't know -- and neither do you.

But if you own DWAC, you have a decision to make: Either get out and protect your capital now, or roll the dice and see what happens.

Good luck.