On June 14, Special Purpose Acquisition Company (SPAC) Digital World Acquisition Corp. released a statement asserting that it continues working hard to achieve a merger with Trump Media & Technology Group, the company responsible for managing the Truth Social networking platform launched by former President Donald Trump.
“The Digital World Acquisition Corp. (‘Digital World’) team has been tirelessly working towards consummating its proposed business combination (the “Business Combination”) with Trump Media & Technology Group Corp. (‘TMTG’), and to afford Digital World stockholders, both large and small, the opportunity to participate in the process of the Business Combination,” read the release which comes after the U.S. Securities and Exchange Commission (SEC) requested additional information about the potential merger between Digital World and TMTG.
SPAC, specifically, said the subpoena seeks information on “documents on due diligence of potential targets other than TMTG.”
SPACs are companies that, in recent years, became popular as an effective mechanism for going public. These companies, typically, are entities without a specific business plan or purpose and their business model is based on seeking mergers or acquisitions of other companies, and then quoted on the stock exchange.
In its release, Digital World stated that it “appreciates that the Securities and Exchange Commission (the ‘SEC’) is tasked with protecting investors and is working to provide the SEC staff with information, pursuant to previously disclosed subpoena requests, so that the SEC has what it needs to conduct and conclude its investigation.”
It also noted that the entire company team “continues to diligently work towards completing the Business Combination, which includes approximately $1.25 billion of net proceeds to TMTG at close, assuming no redemptions by Digital World stockholders, in order for investors to have the opportunity to participate in the Business Combination.”
Subpoenas and requests for information from the SEC had affected Digital World’s shares in recent months, however, after the latest announcement, its shares had a considerable rise of 12%.