Digital World Acuisition Corp., tied to Donald Trump, falls 5% as publicly traded entity says it is facing a regulatory probe

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Digital World Acquisition DWAC,
-5.71%
— Known informally as Special Purpose Acquisition Corp. tied to former President Donald Trump— the Financial Industry Regulatory Authority and the Securities and Exchange Commission requested information about their business and communications with Trump entities before announcing a potential SPAC deal two Monday, a public filing said. did. months ago. The so-called DWAC, referring to its ticker symbol, “has received some preliminary, fact-finding inquiries from regulatory authorities with which it is cooperating,” the entity wrote in a public filing. Shares of SPAC, which plans to merge with former President Trump’s new social media business, soared more than 90% on reports of its plans on October 22, after rising more than four times on Thursday. Data from FactSet shows that DWAC shares hit a massive $175 peak in late October, but have fallen 76% from that peak. DWAC was planned to merge with Trump’s start-up Trump Media & Technology Group. So-called SPACs, also known as blank-check companies, raise money from investors to take private businesses public and have been an enthusiastic investment vehicle for at least the past two years.

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