SPAC Digital World Acquisition Gets Preliminary Inquiries From Regulators

By Michael Dabaie

Special-purpose acquisition company Digital World Acquisition Corp., which plans to merge with Trump Media & Technology Group, said it received preliminary, fact-finding inquiries from regulatory authorities and is cooperating.

In October, Trump Media & Technology , with former President Donald Trump as chairman, and Digital World Acquisition agreed to merge in a deal that would make Trump Media & Technology a publicly listed company. Trump Media & Technology is planning to launch a social network named Truth Social.

Digital World said in a U.S. Securities and Exchange Commission filing that in late October and in early November it received a request for information from the Financial Industry Regulatory Authority surrounding events--specifically, a review of trading-- that preceded the public announcement of the merger agreement.

Shares fell 6% to $42.10.

According to Finra's request, the inquiry shouldn't be construed as an indication that Finra has determined that any violations of Nasdaq rules or federal securities laws have occurred, the company said.

Also, in early November Digital World received a voluntary information and document request from the SEC for documents relating to meetings of Digital World's board, policies and procedures relating to trading, the identification of banking, telephone, and email addresses, the identities of certain investors, and certain documents and communications between Digital World and Trump Media.

According to the SEC's request, the investigation doesn't mean that the SEC has concluded that anyone violated the law or that the SEC has a negative opinion of Digital World or any person, event, or security, the company said in the filing.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

December 06, 2021 11:04 ET (16:04 GMT)

Trump Media and Technology (NASDAQ:DJT)
Historical Stock Chart
From Mar 2024 to Apr 2024