Trump Social-Media SPAC Rallies After SEC Settlement Â
Digital World Acquisition Corp. said it reached a preliminary settlement with regulators investigating the special-purpose acquisition company, and the stock is surging.
Tweet on Dwac shares
Shares of DWAC Trump's Twitter-like app rose 13% After SEC Settlement.#DWAC #Trump #twitter #socialmedia pic.twitter.com/txFOYZ0iIQ
— The_Journalbiz (@the_journalbiz) July 5, 2023
Factset chart, DWAC
Shares of DWAC—the SPAC trying to take former President Donald Trump’s social-media company public—rose 13% on Wednesday morning.
DWAC said in a regulatory filing that if the settlement with the Securities and Exchange Commission is approved, it will amend its registration statement to make sure the document is “materially complete and accurate and consistent with the findings.”
The company will also pay an $18 million fine to the SEC “promptly after the closing of any merger or a comparable business combination or transaction.”
At issue was whether DWAC violated SEC rules by having a target acquisition identified before it raised money.
DWAC and Trump Media & Technology have until September to complete a deal, or the SPAC will have to return money to investors.
