Shares of SPAC & DWAC surged in pre-market trading after reaching a settlement with the SEC’s Enforcement Division.
This happened on Friday and the settlement was concerning its inquiry into the company’s deal to take Trump’s social media platform, Truth Social, public.
If this merger transaction is completed, DWAC will have to pay a fine of $18 million. The SEC stated that DWAC “violated certain antifraud provisions of the Securities Act and the Exchange Act, in connection with the Company’s IPO filings on Form S-1 and the Form S-4 concerning certain statements, agreements and omissions relating to the timing and discussions the Company had with TMTG [Trump Media and Technology Group] regarding the proposed business combination.”
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, commented, “DWAC failed to disclose its discussions with TMTG and failed to disclose a material conflict of interest of its CEO and Chairman.”
DWAC has time until September 8 to complete its deal with Trump Media. However, TMTG has told DWAC that it disagrees with extending the liquidation deadline by an additional three months. DWAC will have to return the money it has raised to its investors if the deal is not completed by the deadline.
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In the past year, DWAC stock has lost around 59%.
The settlement was concerning its inquiry into the company’s deal to take Trump’s social media platform, Truth Social, public.
