[ad_1]
Digital World Acquisition Corp. on Friday updated its Securities and Exchange Commission filing regarding its proposed merger with former President Donald Trump’s social media company Trump Media and Technology Group to reflect new risk factors. announced that it has been updated.
The update comes in the wake of Trump’s recent New York civil fraud judgment, which includes an order to pay a $364 million fine and a three-year ban from any role in operating a business in New York state. was included.
Trump “is the subject of numerous legal proceedings, the scope and scale of which is unprecedented for a former U.S. president and current presidential candidate,” the update said.
DWAC said it could not guarantee that President Trump’s opponents would take action aimed at blocking the deal.
“Claims asserted against TMTG or Digital World include operatives representing the interests of President Trump’s political opponents focused on blocking business combinations to thwart the potential of President Trump. “There can be no assurance that a lack of financial and/or human resources’ focus on financial benefits could further delay or prevent the completion of the business combination,” DWAC said in an update. .
The update also states that Trump Media co-founder Andy Litinsky and Wes Moss’ investment firm United Atlantic Ventures has threatened to block the deal, potentially delaying it. I warned you.
UAV recently sent a letter to DWAC asserting that its early agreement with President Trump starting in 2021 is still in effect and gives the board the right to appoint two directors.
“As we have previously disclosed, the claims made by UAV, and the potential claims arising therefrom, could result in significant legal costs, operational disruption, and adverse effects on the business operations and finances of TMTG and/or the combined entity. may have an adverse health impact,” the update said.
This update comes a week after DWAC revealed that the SEC declared the proposed merger’s registration statement effective. The company said it will soon announce the date when shareholders will vote on the merger.
DWAC, a special acquisition purpose corporation (SPAC), began merger negotiations with TMTG, which operates the conservative platform “Truth Social,” in October 2021, but amid opposition from regulators and an objection from the Department of Justice. , are struggling to reach an agreement.
Also read:The Truth About President Trump Social Merger Partners Settles with SEC on Fraud Charges for Misleading Investors
DWAC stock
DWAC
,
But despite all the uncertainty, stocks are rising, up 216% over the past 12 months, compared to the S&P 500 SPX’s 26.8% rise.
Related: Stocks related to Donald Trump’s Truth Social platform are soaring. Please read this before investing.
Check out Monitored by MarketWatch, a weekly podcast about the financial news we’re all watching and how it affects the economy and your wallet. MarketWatch’s Jeremy Owens provides insights to help you develop an eye for what’s moving the markets and make more informed money decisions. subscribe spotifyand apple. Â
[ad_2]
Source link
