A major business dealing between Truth Social parent company Trump Media and Technology Group and special purpose acquisition company (SPAC) Digital World Acquisition Corp has hit a number of major snags as the latter aims to absorb Trump’s tech firm and take it public. DWAC has requested to delay its earnings results amid data points still in review, as well as a probe into alleged violation of securities regulations.
Digital World Acquisition Corp made its request to delay its latest earnings results report on August 16, 2022, as reported by CNBC. In the filing with the United States Securities and Exchange Commission (SEC), DWAC said that it expects to be able to report its earnings results within the window of the SEC’s grace period for the required filing date. DWAC further claimed that it had suffered around a $4.7 million loss for the three-month period ending on June 30, 2022, although it also claims these numbers are still under review and may not be reflected accurately within the report.
Digital World Acquisition Corp’s request to delay its earnings results also comes as the company faces a securities regulation probe from the SEC and other federal regulators, which reportedly subpoenaed DWAC as part of a probe which is investigating whether or not the merger would violate certain securities laws and regulations. The merger is set to supply Trump Media and Technology Group with billions of dollars in capital investment. While the probe is unrelated to further ongoing woes for Trump, it’s worth noting that the former president is also facing a litany of legal issues, including ongoing investigation into his role in the January 6, 2021 US Capitol riots, which resulted in his banning from Twitter and formed the basis for Truth Social.
Currently, Digital World Acquisition Corp has also asked to postpone the merger for a year from September 2022. DWAC has previously said that investigation into the Trump Media and Tech merger would delay or even shut down the deal altogether. As we await further updates, stay tuned here at Shacknews.