Securities markets investigators are honing in on a publicly traded company that has announced plans to merge with former President Donald Trump's social media firm, questioning communications between the two, a document posted on the inquiry showed
WASHINGTON (Pakistan Point News / Sputnik - 06th December, 2021) Securities markets investigators are honing in on a publicly traded company that has announced plans to merge with former President Donald Trump's social media firm, questioning communications between the two, a document posted on the inquiry showed.
"DWAC has received certain preliminary, fact-finding inquiries from regulatory authorities, with which it is cooperating," Digital World Acquisition Corp said in a so-called 8-K document filed with the Securities and Exchange Commission (SEC) that is overseeing the matter.
DWAC, traded on New York's Nasdaq exchange for technology stocks, has been identified as the special purpose acquisition company that will facilitate the merger between the publicly-traded SPAC and the Trump Media & Technology Group, the social media firm of the former US president.
Trump has announced plans to launch an application called Truth Social next and also signaled intentions to run for the White House in 2024.
Trump Media & Technology Group says it has entered into agreements to raise $1 billion from investors ahead of a planned stock market listing.
DWAC said the inquiry it has been subjected to by the SEC's financial industry regulatory authority, "should not be construed as an indication that the authority has determined that any violations of Nasdaq rules or Federal securities laws have occurred".
Nor should there be the perception that the company was being investigated on the merits of the securities involved or any person who had executed transactions in such securities, it added.
