Backers of the blank-check company trying to take Donald Trump’s social media company public failed to pay the proxy solicitation firm they hired to drum up shareholder support, according to media reports.
According to the Financial Times newspaper, Digital World Acquisition Corporation, a special purpose acquisition company set up by Patrick Orlando, has not paid Saratoga Proxy Consulting for its work helping to rally shareholders, citing “people familiar with the situation.”
The newspaper reported that Orlando does not have enough money to pay the six-figure bill.
Short sellers Kerrisdale Capital Management and Iceberg Research have both questioned the viability of the merger agreement, which was signed almost a year ago, and accused its backers of disseminating false information.
Digital World has been facing difficulties getting shareholders to approve an extension of the deal’s deadline.
On September 9, Digital World announced that it would extend its life by three months in an effort to obtain backing from shareholders for a 12-month extension of its merger with Trump Media & Technology Group, which operates the former U.S. president’s Truth Social app.