The ongoing issues between Trump Media and Technology Group and Digital World Acquisition Corp (NASDAQ:DWAC) continue unabated, as Digital World slides over 3.5% in Monday afternoon’s trading. This is despite a reasonably positive piece of news where the pair agreed to extend the time allotted for due diligence. However, a new clause in the agreement that allowed for more time scuttled any hope of gains.
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The deal was a good one on the surface, allowing both sides more time to handle their due diligence. However, a new clause proved troubling, one that allows either Trump Media or Digital World to shut down the planned merger altogether. Right now, the planned merger between the two is expected to go through. In fact, supporting documentation says that they plan to move “expeditiously” toward completing the merger in a span of time called “the coming months.”
However, the fact that either side now has a panic button to pull out of the merger altogether between October 31 and November 31 likely is giving some investors cause for concern. And with judges in New York City demanding that Trump suspend all business operations in the state over issues of “fraud”—though at last report, no trial has taken place that would suggest this was anything more than a judge’s opinion—the notion that Digital World might pull stakes itself becomes more and more likely.
What was the Highest Price of DWAC?
A look at the past three years for DWAC stock highlights the level of volatility experienced by shareholders. Indeed, DWAC shares hit a high of almost $100 in 2022 but have since retreated significantly. Nevertheless, investors are up over 56% during this timeframe.