Digital World Acquisition Corp., a shell company set to merge with former President Donald J. Trump’s social media company, has announced a delay in a crucial shareholders’ meeting that was originally scheduled. The meeting aimed to seek approval from investors to extend the deadline for the completion of the merger with Trump Media & Technology Group.

This delay comes after Digital World reached a settlement with the Securities and Exchange Commission (SEC) regarding an investigation into the events leading up to the initial merger announcement. As part of the settlement, Digital World will pay an $18 million penalty upon completing the merger and make necessary revisions to filings to comply with federal securities laws.

Digital World is now seeking approval from at least 65 percent of its shareholders to extend the deadline for the deal. The new deadline for shareholder approval has been set for September 5, just days before the shell company would be required to begin returning the $300 million it raised from investors in an initial public offering.

These recent developments introduce uncertainty to the completion of the merger and raise concerns about its financial viability. Special purpose acquisition companies (SPACs) like Digital World are obligated by securities laws to return raised funds to investors if they fail to complete a merger within a specified period. Since the beginning of 2020, around 30 percent of SPACs that went public have had to liquidate due to failed mergers.

If the proposed merger between Digital World and Trump Media goes through, it would provide a much-needed financial boost to Trump Media, especially for its social media platform, Truth Social. The revised agreement also grants Donald Trump greater control over the combined company and sets a timeline for completion by the end of the year.

Despite these recent developments, Truth Social’s growth has slowed since its launch, leading to doubts about the platform’s future success.