- Publicly-traded SPAC, which has announced plans to merge with former President Donald Trump’s new social media company, said in a new filing that the SEC and FINRA regulatory agencies had consulted with Trump’s company before the deal was announced. Information about stock trading and communication is sought with.
- The investigation was disclosed in an 8-K filing by special purpose acquisition company Digital World Acquisition Corp.
- “As requested by the SEC, the investigation does not mean that the SEC has concluded that anyone has violated the law or that the SEC has a negative opinion about DWAC or any person, event or security,” the filing said.
Publicly-traded SPAC, which has announced plans to merge with former President Donald Trump’s new social media company, said in a new filing on Monday that the Securities and Exchange Commission and another market regulator prior to the deal Has sought information about stock trading and communications with Trump’s company. Was declared.
The investigation by the SEC and the Financial Industry Regulatory Authority was disclosed in an 8-K filing with the SEC by special purpose acquisition company Digital World Acquisition Corp.
The filing comes just two days after Trump’s company, Trump Media & Technology Group and DWAC say SPAC has reached agreements to receive $1 billion in committed capital From a “diversified group of institutional investors” received at the conclusion of the merger.
It also comes three weeks after Sen. Elizabeth Warren, D-Mass., asked the SEC to investigate potential securities violations linked to the merger.
Warren referred to news reports in his request that DWAC “may have infringed securities by conducting private and undisclosed discussions about the merger as early as May 2021, omitting this information.” [SEC) filing and other public statements.”
But the investigations by the SEC and FINRA predate Warren’s request, according to DWAC’s 8-K filing.
“DWAC has received certain preliminary, fact-finding inquiries from regulatory authorities, with which it is cooperating,” the company said in the filing.
“Specifically, in late October and in early November 2021, DWAC received a request for information from FINRA, surrounding events (specifically, a review of trading) that preceded the public announcement of the October 20, 2021 Merger Agreement,” the filing said.
“According to FINRA’s request, the inquiry should not be construed as an indication that FINRA has determined that any violations of Nasdaq rules or federal securities laws have occurred, nor as a reflection upon the merits of the securities involved or upon any person who effected transactions in such securities.”
“Additionally, in early November 2021, DWAC received a voluntary information and document request from the SEC which sought, inter alia, documents relating to meetings of DWAC’s Board of Directors, policies and procedures relating to trading, the identification of banking, telephone, and email addresses, the identities of certain investors, and certain documents and communications between DWAC and TMTG,” DWAC’s filing said.
“According to the SEC’s request, the investigation does not mean that the SEC has concluded that anyone violated the law or that the SEC has a negative opinion of DWAC or any person, event, or security.”
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