Digital World Acquisition Corp., the special purpose acquisition company planning to merge with the company behind former President Donald Trump's Truth Social platform, is asking its shareholders to delay the deadline because of federal investigations.
The illustration photo shows a person checking the app store on their phone. The photo was taken by CHRIS DELMAS/ AFP.
DWAC is asking for a one-year extension to September 8, 2023 in order to complete a deal or return funding to investors.
DWAC warned that the investigations may hamper its ability to win regulatory approval and that it may need to liquidate.
In October, DWAC and the Trump Media and Technology Group announced they were merging to make it easier for the public to see the company associated with the former president.
The company warned that the investigations could result in significant penalties, injunctions, prohibitions, and other sanctions against them.
The SEC launched an investigation into DWAC in December after allegations surfaced that company executives may have held talks with TMGT before DWAC's initial public offering. It is the subject of a Justice Department criminal probe. According to regulatory filings, each member of the company's board received a grand jury subpoena seeking information on communications with multiple individuals.
After Federal Grand Jury Issues Subpoenas, the shares of Trump's Truth Social SPAC plummeted.
The shares of a political action committee that supports the Trump social media company have doubled.
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