A blank-cheque company that plans to take Donald Trump’s media business public has changed its listed address to a mailbox at a UPS store, the latest sign that the company is trying to preserve cash as it struggles to keep the deal alive.
Digital World Acquisition Corporation, a special purpose acquisition company set up by Patrick Orlando, now lists 3109 Grand Avenue in Miami, Florida as its place of business. A search of the address brings up a UPS store nestled between an Italian restaurant and a nail salon in the waterfront neighbourhood of Coconut Grove.
A person who answered the phone at the UPS store on Monday confirmed that unit 450, listed on DWAC’s address, is one of its mailboxes.
DWAC, which previously listed a WeWork location in Miami’s Brickell City Centre as its address, has agreed to pay a business affiliated with Orlando $15,000 a month for office space and administrative support. UPS typically charges approximately $50 per month to rent out its mailboxes to businesses, according to stores contacted by the Financial Times, though prices vary.
It is unclear whether DWAC still rents office space from WeWork, but in a late filing notice submitted in mid-August, the UPS location was provided as “address of principal executive office”. Benessere Capital Acquisition Corp, another Spac led by Orlando, also used the address.
Orlando stands to make hundreds of millions of dollars if the deal with Trump Media & Technology Group goes through, but has faced several obstacles in getting it over the line, including investigations by federal prosecutors. US authorities have not accused any person or company of any wrongdoing in connection with the Trump deal.
Sponsors are heavily incentivised to get a deal done because they are responsible for the costs related to setting up a Spac and stand to make a significant sum of money if they take a company public. DWAC’s backers were forced to pay $3mn to keep the deal with TMTG alive earlier this month after it failed to get enough shareholder support for a one-year extension.
The FT reported earlier this month that DWAC had not paid its former proxy solicitors Saratoga Proxy Consulting for working to drum up support for an extension to complete the deal. A source familiar with the situation said Orlando had informed the company that there was no money to pay them. DWAC has since retained Alliance Advisors as its proxy solicitors as the next deadline for a shareholder vote on the extension approaches.
TMTG, the media group set up by the former US president with a mission to cancel “cancel culture” and stand up to Big Tech, stood to receive about $1bn in proceeds if the deal went through. However, DWAC disclosed on Friday that some investors who agreed to provide financing through a so-called private investment in public equity transaction had pulled out, taking with them $138.5mn of expected proceeds.
Orlando did not respond to a request for comment.