While Digital World Has Gotten a Tentative All-Clear Signal From the SEC, Trump Appears To Be Angling To Return to Twitter
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Digital World Acquisition Corp. (NASDAQ:DWAC), the Special Purpose Acquisition Company (SPAC) that is slated to take Truth Social’s parent, Trump Media and Technology Group (TMTG), public in a much-anticipated reverse merger deal, has finally received a tentative all-clear signal from the SEC, paving the way for the much-delayed deal to finally achieve closure.
Digital World noted in a recent Form 8-K filed with the SEC:
“In connection with the Investigation, DWAC has reached an agreement in principle with the Staff of the SEC’s Division of Enforcement (the “Settlement in Principle”). The terms of this Settlement in Principle are not yet definitive, as a final settlement agreement is subject to the approval by the Commission, and the Company cannot predict whether or when it may obtain the Commission’s approval.”
Under the preliminary terms, Digital World will pay a civil penalty of $18 million to the SEC immediately after closing its merger agreement with Trump Media and Technology Group. The SPAC is also required to amend its previously-filed Form S-4 to rectify any lacunae related to the accuracy of the presented information.
As a refresher, the SEC and FINRA have been investigating Digital World in connection with alleged violations of securities law and inappropriate disclosure of pertinent information in the run-up to the merger announcement. Specifically, the SPAC’s management is believed to have held private discussions about a merger with TMTG as early as May 2021 but failed to disclose this pertinent information in its public filings.
Additionally, Trump Media and Technology
Read more on wccftech.com
