2023-07-20 17:12:26 ET
Trump SPAC Digital World Acquisition ( NASDAQ: DWAC ) soared 30% in after hours trading after a settlement with the Securities and Exchange Commission's Enforcement Division in connection with its probe into the SPAC's deal to take Donald Trump's social media company public.
Digital World ( DWAC ) will have to pay an $18 million fine if it completes its merger transaction.
The SEC concluded that DWAC allegedly misled investors and the SEC by failing to disclose that it had formulated a plan to acquire and was pursuing the acquisition of Trump Media & Technology Group prior to DWAC’s IPO, the SEC said in a statement on Thursday.
The settlement comes after Digital World ( DWAC ) disclosed earlier this month that it had reached an in-principle settlement with the SEC over the matters.
“DWAC failed to disclose its discussions with TMTG and failed to disclose a material conflict of interest of its CEO and Chairman,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement said in the statement.
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Trump SPAC Digital World jumps amid settlement with SEC