2023-07-21 10:25:23 ET
Trump SPAC Digital World Acquisition ( NASDAQ: DWAC ) soared 57% amid trading halts after a settlement with the Securities and Exchange Commission in connection with its probe into the SPAC's deal to take Donald Trump's social media company public. DWAC earlier gained as much as 94%.
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.
The Trump SPAC now has until Sept. 8 to complete its deal with Trump Media, though TMTG earlier this month said in a filing that it disagrees with extending the deadline an additional three months. If the deal isn't completed by the deadline, the SPAC will have to return the money it raised to investors.
Digital World ( DWAC ) has set Aug. 17 for a shareholder vote to allow the SPAC to have another year to completes its deal with TMTG.
More on Digital World
- Digital World: Diminished Opportunity
- Checking DWAC's Pulse: More Concerning Headlines
- Trump SPAC Digital World appoints Eric Swider as permanent CEO
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Trump SPAC Digital World skyrockets 57% aftter SEC settlement