- Digital World Acquisition Corp has postponed merger extension to Nov. 22.
- DWAC stock trades above $23 in pre-market.
- Donald Trump has hinted that he may announce his run for 2024 presidency after mid-terms.
Digital World Acquisition Corp (DWAC) shares are spiking as much as 32% to $23.08 in Monday's premarket after news arrived over the weekend that Trump was nearing the announcement of a new run for president. The special purpose acquisition company (SPAC) endeavoring to merge with the parent company of Donald Trump's Truth Social app also advanced more than 7% on Friday after management postponed the shareholder meeting to decide on an extension of its time to complete a merger. By moving the stockholder meeting from November 3 to November 22, the company now has more time available to pick up necessary proxy votes to extend the merger timeline.
DWAC stock news
The market met the rescheduling with great fanfare on Friday, but it seems Donald Trump's possible presidential run is garnering even more excitement. On Friday, Politico reported that Trump may announce his 2024 presidential run on November 14. Shareholders expect this to drive more traffic to the Truth Social app. Talk of another Trump presidential run emerged after a Trump rally last week in which he said he would "very, very probably do it again." This would be after the congressional midterm elections on Tuesday, November 8, in which Trump has signaled support for a number of Republican candidates.
DWAC needs 65% of its shareholders to vote in favor of extending the deal for another year, up until September 8, 2023, to be precise. Back in September when the initial vote was scheduled, the SPAC only had 43% of shareholders voting in favor. The problem is that a large percentage of DWAC shareholders are individual investors who do not pay attention to details like proxy votes. Getting in touch with so many individuals is tedious work.
"The Special Meeting, which was originally scheduled for September 6, 2022, is being further adjourned in order to solicit more votes toward the approval to further amend the Company's amended and restated certificate of incorporation ("Extension Amendment") to extend the period of time available to complete a business combination, in three-month increments, until September 8, 2023, or such earlier date as determined by the Company's Board of Directors," the SPAC said in a statement on November 3. "The Extension Amendment would effectively provide for an additional six months, past the two three-month extensions currently permitted by the Company's existing governing documents, to complete an initial business combination."
DWAC stock forecast
Now above $20 in the premarket, DWAC bulls will definitely be taking profits near the open or once the SPAC reaches $21.88. That price level is the high from October 13 as well as open from September 20. It is also just under the swing low from June 30. Above here is the more important $25 level that acted as resistance during the first half of September. The Relative Strength Index (RSI) is eyeing a jump above the 50 level, which is normally bullish. Additionally, the 9-day moving average has moved about 10 cents ahead of the 21-day moving average, displaying the energy for a further rally. Support is around $16.
DWAC daily stock chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap
SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.