The stock of the special purpose acquisition company that will fund former President Donald Trump's planned social media platform fell after Sen. Elizabeth Warren sent a letter to the Securities and Exchange Commission requesting an investigation.
Donald Trump sat in the White House's [+] Room on July 7, 2020 during a discussion in the East. JIM WATSON is the photographer
The images are from the same source.
Digital World Acquisition Corp.'s shares were trading at $55.60 Thursday afternoon, down nearly 5% from Wednesday's close and off around 6.6% from the high of $59.54 Thursday morning.
The former president will be the chairman of the company that DWAC is merging with.
According to media reports, representatives of DWAC and Trump's new company may have committed securities violations by not revealing the merger talks.
The Trump Media and Technology Group did not respond to a request for comment.
"The reports about DWAC and Trump Media and Technology Group appear to be a textbook example of SPAC misleading shareholders and the public about important information," Warren said. The senator has been critical of SPACs, which aim to raise money from investors before merging with existing companies.
The key background.
After the merger was announced, the stock price of DWAC went from $10 to $175 in a single week. Many Trump supporters who bought in at the peak of the craze are now sitting on losses.
What to watch for.
A full release of TRUTH Social is expected in early 2022. Trump said he would use the website to regain his social media presence after being banned from all major platforms after his supporters attacked the U.S. Capitol on January 6. The Trump Media and Technology Group plans to launch a streaming service.
The New York Times reported that the $300 million SPAC deal may have skirted securities laws.
The shares of SPAC behind Trump social media company jumped 400%.
Trump isEnriching Wall Street Elites while Screwing His Own Supporters.
