Trump SPAC under investigation by federal regulators, including SEC
KEY POINTS
*Federal regulators are investigating former President Donald Trump's SPAC deal.
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The SEC and FINRA probes were disclosed in a filing by Digital World Acquisition Corp., the special purpose acquisition company on track to merge with Trump Media & Technology Group.
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Trump has said his company will launch a social media platform called "TRUTH Social."
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The platform would purportedly compete with Twitter and Facebook, both of which have banned the former president because of his incitement of the Jan. 6 Capitol riot.
The SPAC that plans to merge with former President Donald Trump's new social media company revealed Monday that the
Securities and Exchange Commission and another regulator weeks ago asked it for information regarding stock trading and communications with Trump's firm before the deal was announced.
The investigations by the SEC and the Financial Industry Regulatory Authority were disclosed in an 8-K filing with the SEC by Digital World Acquisition Corp., the special purpose acquisition company on track to merge with Trump Media & Technology Group.
DWAC shares were trading at $43.19 per share on Monday morning, down almost 3% on news of the filing, even as equity markets broadly were higher.
The filing comes just two days after Trump Media & Technology Group and DWAC said the SPAC had reached agreements to obtain $1 billion in committed capital from a "diverse group of institutional investors" to be received when the merger is consummated. The identities of those investors in that so-called PIPE, or private investment in public equity, were not publicly disclosed.
Monday's 8-K filing by DWAC detailed the terms of the PIPE, whose subscribers will get shares with an initial conversion price of $33.60 per share.
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https://www.google.com/amp/s/www.cnbc.com/amp/2021/12/06/trump-spac-investigated-by-federal-regulators-including-sec.html
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