(Reuters) – Digital World Acquisition, the blank-check firm set to merge with former U.S. President Donald Trump’s media company, said in a filing it could raise up to $50 million by issuing convertible notes or warrants.
Digital World’s shares fell 9.2% to $20.30 on Wednesday.
A special purpose acquisition company, or SPAC, is a publicly listed shell company that raises funds with the intention of merging with a private company within two years of floating its shares. The private firm goes public through the merger.
Digital World said in the filing with the U.S. Securities and Exchange Commission that it was still in talks to raise funds through alternative options after some potential investors expressed interest, though it added there was no certainty that the talks will be successful.
The blank-check firm said it would cancel the remaining $530.5 million of the $1 billion private investment in public equity (PIPE) it had raised.
The SPAC raised the $1 billion through PIPE in 2022, but failed to complete the merger with Trump Media and Technology Group by a September 2022 deadline, giving the PIPE investors the right to cancel their commitments.
Trump Media & Technology Group operates the social media platform Truth Social.
(Reporting by Akash Sriram in Bengaluru; Editing by Shounak Dasgupta)