Trump Social-Media SPAC's Shares Jump After SEC Settlement
July 21 2023 - 7:37AM
Dow Jones News
By Dean Seal
Shares of Digital World Acquisition Corp., the special-purpose
acquisition company aiming to merge with Donald Trump's media
company, are trading higher after the company resolved a regulatory
investigation with an $18 million fine.
The stock is up 20% at $16.15 in premarket trading. At
Thursday's close, shares were down 11% since the start of the year
and had fallen 59% over the past 12 months.
The U.S. Securities and Exchange Commission said late Thursday
that DWAC will pay the fine if it completes a combination with
Trump Media & Technology Group.
The agency had alleged that DWAC misled investors who
participated in its $287 million initial public offering in 2021.
The blank-check company told investors that it didn't have
discussions with a merger target prior to raising money, but its
officers had extensive merger discussions with Trump's company, the
SEC said.
DWAC first disclosed the likely settlement in early July, though
the SEC hadn't approved the deal yet.
The settlement clears one hurdle for DWAC's merger with Trump
Media & Technology, which will become publicly traded if the
SPAC tie-up is closed. The two parties have until September to
complete the combination.
If the deal doesn't close in time, DWAC will have to return the
millions it raised to investors. If it does so by January 2025, the
SEC will waive its penalty.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
July 21, 2023 07:22 ET (11:22 GMT)
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